CHINA-RUSSIA: CHINESE COMPANIES NOT STATING THEIR PLANS FOLLOWING SANCTIONS ON RUSSIA

The South China Morning Post (March 1) observed that complying with Western sanctions on Russia would run counter to the Chinese government’s official policy of opposing such measures. On the other hand, Chinese companies could find themselves subject to huge fines and penalties for breach of sanctions if they work with targeted entities. US sanctions on exporting hi-tech products to Russia are creating a dilemma for Chinese tech companies, from ride-hailing giant Didi Chuxing to smartphone vendor Xiaomi. Unlike Western tech firms that have rushed to implement product export and service restrictions to Russia, Chinese tech firms have so far remained silent on whether they will cut Russia off from access to semiconductors and other advanced technologies crucial to the military, biotechnology, and aerospace industries. China’s Lenovo, the world’s largest personal computer manufacturer, immediately came under fire in the country amid reports that it had halted sales to Russia along with US rival Dell and chip supplier Intel. Lenovo has yet to make an official statement on the matter. The silence is partly related to Beijing’s official opposition to sanctions against Russia. Huawei last year struck a deal with MTS, Russia’s largest mobile operator, to launch commercial 5G services in the country. Huawei has also worked with Rostelecom, a Russian communications operator included in the fresh US sanctions, on its digitisation efforts, according to previous statements on the Chinese company’s website. Meanwhile Semiconductor Manufacturing International Corp (SMIC), China’s flagship wafer foundry, has yet to make a statement on the matter.





Subscribe to Newswire | Site Map | Email Us
Centre for China Analysis and Strategy, A-50, Second Floor, Vasant Vihar, New Delhi-110057
Tel: 011 41017353
Email: office@ccasindia.org