A Chinese vender waits for customers at a kiosk in Moscow April 1, 2007.

The Kremlin began a ban on immigrant venders in its market from April 1, forcing foreign traders to pack up their stalls and leaving dozens of kiosks empty.

The controversial decision announced by Russia looks to improve conditions for Russian traders, a report carried by Reuters reported Sunday.

Immigrant venders are only allowed to work as porters, cleaners, wholesalers. They are not permitted to directly sell goods to local customers.

Domestic data show that the number of local Chinese venders in Russia has surpassed 200,000, while statistics released by the Kremlin show there are some 1 million Chinese in the country.

The ban has raised speculation that it aims at Chinese traders and it will deal a blow to most Chinese there who work as 'Dao Ye' -- goods traders - in the country.

Most of Chinese immigrated to the country are market traders. Some 100,000 Chinese traders have to go back to China, the Beijing News estimated in a previous reported.

Xiao Jin (alias) is one of the victims.

Xiao, who is from Yanbian, Jilin province adjacent to Russia, has to return to China because he has no relationships here.

Some of Chinese keep close watch on the development, while others have moved to Moscow to continue their business because of a looser control there.

Many believed the ban is unfair, impractical and xenophobic, the Hong Kong-based Ta Kung Pao reported.

Wang Lijiu, a Research Professor of the Institute of Russian Studies at China Institutes of Contemporary International Relations said in previous reports that Chinese venders should follow the local rule and try to change jobs.

"Chinese should follow the rule and keep the losses at a minimum level."

A report by news.xmnext.com said Chinese should eye new solutions to the ban, including hiring local workers, searching stable customers or establishing cooperation with local Russia partners on the conditions that "Russia will not drop it because it is in the interests of the nation".

The report came just days after President Hu Jintao wrapped up his three-day official visit to Russia from March 26-28, during which 21 agreements and contracts worth 4.3 billion US dollars were signed.

There are no details whether Russia's ban on immigrant traders was discussed during President Hu's visit.

Russian nationalism is on the rise and resentment has grown against Chinese venders and their business success.

Seven Chinese were confirmed to have been injured in the Moscow market explosion on mid August last year.

According to media reports in Russia, 10 percent of Chinese immigrants had been abused or bullied in the country. Meanwhile, 60-74 percent attributed police racketeering as one of their biggest concerns in the country.

"Chinese are badly treated by police and hooligans," media reports said.