Chinese technology companies they are ceasing to do business in Russiadespite Beijing’s calls for companies to resist pressure from US and supplier sanctions.

Several companies are reducing their shipments to Russia, where Chinese technology companies dominate the market for many products, without making any public announcement, it reveals. WSJ.

Among them are the personal computer giant Lenovo and the smartphone and gadget maker Xiaomi.

Unlike many Western companies, these companies avoided making public statements about Russia’s war in Ukraine or their business there, as Beijing opposes Western sanctions.

Consumer drone giant DJI Technology Co. took the unusual step of announcing the suspension of business last month in Russia and Ukraine, pending a compliance review.

Chinese exports of technology products to Russia fell sharply in March from February, with shipments of laptopsnearly two-thirds of those in smartphones and 98% in those of telecommunications base stationsaccording to the latest trade data from the Chinese government.

The backlash comes after the United States and its allies imposed a series of financial sanctions and export controls on Russia following its invasion of Ukraine in late February. The United States has threatened to punish Chinese companies that violate the rules.

Major US chip companies that supply Chinese companies are pushing their customers to comply and ensure their semiconductors don’t end up in third-party products shipped to Russia.

China’s Ministry of Commerce acknowledged last month that the sanctions had disrupted China’s trade with Russia, but urged companies to “not to submit to external coercion or to make improper external statements.”

China has expanded its suite of measures to combat foreign sanctions, including rules that can force Chinese companies to deny foreign sanctions it deems unwarranted, although Beijing has so far not issued any non-compliance orders.


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