Tourism's growing, there's talk of further energy cooperation, and in 2011 trade volume between the two topped 80 billion dollars, a figure expected to double in a few years.

 

　　North China's Heihe city is literally at the front line of this cross border trade. CRI's Dominic Swire recently visited and brings us this report.

 

　　"We are standing literally on the northern tip of China what you see behind me is Heilongjiang River, and if it wasn't for some fences and security guards I could just walk across there and it would take about 15 minutes to get into the Russian Federation."

 

　　Walking on the river is no problem when the outside temperature is minus 30 degrees celcius. But most Russians prefer to drive. And many of them come here.

 

　　This is an indoor market the size of an aircraft hanger. And it's been designed with Russians in mind.

 

　　"This market literally sells everything under the sun. And a good illustration of that is this shop here. I mean, just by the entrance you've got some telescopes, and turning round you have some Russian products, you've got your alcohol on the shelf here, you have some Russian dolls, you've got your Russian chocolate just down here and, if you have a spare ten thousand renmingbi, you can also pick up a moose's head."

 

　　Russian student Gerna studies across the river in the Russian city Blagoveshchensk. He says this place is well known.

 

　　"From Moscow people come to Blagoveshchensk and travel to China to Heihe."

 

　　Why?

 

　　"Because it's a good place, it's a good city. There are many places to relax."

 

　　For example?

 

　　"Saunas, clubs, different restaurants and, of course, prices."

 

　　Russians say products sold here are four to five times cheaper than back home. And locals don't need a visa to visit.

 

　　Guan Zhaohui's been selling Russian food and drink here for 10 years. She makes over 8 thousand dollars per year.

 

　　"Of course, cross boarder trade has made a big difference in Heihe. Everything's changed in the last three years. Russian trade has helped our economy develop fast. For example, there are now more people taking taxis; and hotels and health spas are also booming. All of this contributes to Heihe's economy."

 

　　The local government runs the market. Wu Bo is Vice Deputy of the commerce department.

 

　　"We promote policies that guarantee Russian shoppers equal treatment. Every item here has a bilingual label with a clear price. There may be some crime, but the Departments of Commerce and Public Security are working to stop this. The market's business model is becoming more like a supermarket where items are paid for collectively."

 

　　As Chinese and Russian leaders discuss further cooperation on an international level, this small city of Heihe is benefiting directly.

 

　　There are already plans to increase transport connections, share energy and introduce tax benefits to further develop China's north and Russia's Far East.

 

　　For CRI, I'm Dominic Swire.