Chinese companies appear to be reducing their market share in Russia in order to avoid Western sanctions. The Wall Street Journal reported on this, citing insiders.
Lenovo and Xiaomi are two of these companies. The latter is particularly popular with Russian users. As a result, deliveries of smartphones, laptops, and telecommunications base stations from China to Russia fell by 66% in March, according to an expert in the field. China’s overall exports decreased by 27%.
Because the Chinese Ministry of Commerce has urged the giants not to succumb to outside pressure, companies are quietly exiting the market without making public announcements. All because Western partners refuse to allow their semiconductor devices into the Russian market.
Nonetheless, the falling supply situation could be linked to logistical issues as well as a general reduction in supplies to the Russian Federation. Many experts predict a significant drop in the country’s GDP this year, so businesses can simply bring in fewer goods to sell in Russia.