Chinese Vice-Minister of Commerce Yu Guangzhou said in Moscow that he "understands" Russian efforts to regulate foreign retailers and workers.

Yu's statement came after the Russian government earlier announced a ban on foreign vendors.

There are millions of Chinese retailers selling goods in Russia's marketplaces.

"In the long run, Russia's measures at home will help stop bad practices such as 'grey clearance' from the very beginning and optimize Sino-Russian trade," Yu said on Thursday.

The regulation announced at the end of last year gradually banned foreigners from Russian markets beginning in January. At the time, the government said the measure was designed in part to clear markets of criminal groups.

Yu noted that implementation of the rule had a negative impact on commerce for both sides in the short term and had destabilized trade in consumer goods.

According to Yu, the commerce ministry has suggested in consultations that Russia avoid drastic measures in implementation and give a "grace period" to Chinese traders.

"The two governments have reached common understanding in principle," Yu said without elaborating.

When the ban was announced, millions of Chinese retailers and stallholders sold their stock at low prices and returned home, leaving vacant markets behind.