Chinese companies seeking opportunities amid War and western sanctions on Russia

By Updates

March 4, 2022

BusinessNews

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American and European companies have been severing ties with Russia or at least downgrading their business in that country since the Ukraine invasion, but Chinese tech businesses have remained silent.

CNBC has contacted nine Chinese technology companies but only one has commented. Everyone else declined to comment or did not return comments.

While leaders in the US, Europe and Asia have criticized and endorsed Russia and President Vladimir Putin, China has refused to call the attack an attack.

Apple said on Tuesday it had stopped selling its products in Russia. The iPhone bully also claimed to have removed Russian-backed news outlets RT News and Sputnik News from its App Store worldwide outside of Russia.

Google has removed both news stores from its Play Store in Europe.

Nike bought online goods its unavailable in Russia says it cannot guarantee the delivery of goods in the country. At the time, major movie studios including Disney and Warner Bros. suspend theater release of upcoming Russian films.

Power companies like BP have withdrawn from Russian investments while Visa and Mastercard have blocked Russian financial institutions from their payment networks.

The US, European countries and allies have imposed sanctions on Russia for its invasion of Ukraine, targeted financial institutions and national oligarchs. Penalties have caused the Russian ruble to plummet and the shares of one of the country’s largest lenders Sberbank to fall.

Some companies have reduced business activity in Russia to comply with the sanctions.
Chinese firms remain silent

China and Russia have been very close in the past few months. In December, Chinese leader Xi Jinping held a telephone call with Putin. The Russian president called Xi his “dear friend” and said that relations between the two countries had reached an “unprecedented level”.

China has not responded to Russia’s invasion of Ukraine with sanctions and sanctions similar to those of Western powers. Officials refrained from calling the attack an attack and instead threw a case against it in the U.S.

China’s banking and insurance regulator has said he opposes and will not join Russia’s financial sanctions.

Although many Western companies have spoken out against the war and reduced their business in Russia, Chinese companies have remained silent and have taken a small step.

“For Chinese companies, the reputation of China-Russia relations seems overwhelming. These companies do not want to offend Beijing by taking a political stand (i.e., leaving Russia), “Abishur Prakash, founder of the Center for Innovating the Future, a consulting firm, told CNBC in an email on Wednesday.

“Unless the Chinese government suddenly changes its foreign policy, Chinese firms are less likely to ‘work nationally.’ And, at the moment, the tone is Russia’s insignificant support. ”

Consumer electronics manufacturers Huawei, Xiaomi and Honor, declined to comment when contacted by CNBC.