Chinese Firms Staying Put in Russia despite Exodus from Western Companies (Apple, Netflix, Nike, H&M)
Beijing – But Chinese companies are not behaving the same way even as Apple, Nike, Netflix, and fashion chain H & M. And many other Western companies have cut or paused business in Russia amid title sanctions and global criticism.
While Chinese companies have so far stayed largely silent about their operations in Russia, the Chinese government struck a no-limit partnership with Russia this week before Moscow’s Feb 24 invasion of Ukraine.
It has blamed NATO expansion for the crisis and urged stocks to resolve the situation. On social media Chinese public has shown overwhelming support for Russia’s attack, which Moscow calls a special operation.
Chinese right-hailing giant Didi Chuxing phase the public backlash in China last week after it announced it would pull out of Russia with social media users accusing it of succumbing to US pressure on Moscow.
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It later reverses the decision without giving any explanation. Lenovo world’s number one PC maker has also been subjected to heavy criticism in China. A local Belarusian news outlet reported without saying where it got information that it would cease supplying Russia.
The small size of the Russian market for Chinese firms would however make it easier for them to change tack and join foreign rivals in departing, especially as Moscow faces economic collapse due to growing Western sanctions.
Russia smartphone market for example, to just 31 million units last year, or just wanted of China’s domestic market size by comparison.
By opting to stay in Russia, Chinese firms may be in a position to grab market share there, but how long more they will be able to sell. There is a big question given escalating sanctions and export curbs.
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