China hopes to solve emerging trade problems with Russia through consultation, Foreign Ministry spokesman Qin Gang said at a regular press briefing onTuesday.

Qin made the remarks when asked to comment on Russia's recent decision to confiscate and destroy 2 billion US dollars worth of made-in-China goods.

According to Chinese newspaper International Herald Leader, the Russian government announced on June 18 that it would destroy 2 billion US dollars worth of goods from China, which were claimed to be of interior quality. The goods were seized by the Russia during its crackdown on alleged gray customs clearance goods imported by Russian merchants.

Gray customs clearance refers to the practice by some Russian clearance companies of bringing imported goods into the Russian market at a tax rate lower than regulated levels.

Qin said China urges its merchants in Russia to observe Russian trade and economic regulations, and do more to facilitate the state-to-state relations.

A Chinese merchant was cited by the newspaper on condition of anonymity that Chinese merchants involved would suffer a great loss as there were more Chinese products entering the Russian market through the practice of "gray customs clearance" in recent years.

The practice is recognized by Russia's Customs Commission and the Russian clearance companies stand to make a lot of money through tax manipulation on black market goods. However, retailers of goods that entered Russia through the practice have no official customs documents.

China hopes the problem can be solved through dialogue between the two Chinese and Russian parties, Qin said.

(Xinhua News Agency July 1, 2009)