- Chinese tech companies, including PC giant Lenovo Group Ltd (OTC:LNVGY) and smartphone maker Xiaomi Corp (OTC:XIACY), quietly pulled back from Russia under pressure from U.S. sanctions and suppliers, the Wall Street Journal reports.
- Consumer drone giant SZ DJI Technology Co suspended its business in Russia and Ukraine pending a compliance review.
- The companies pulled back amid Beijing opposing the sanctions.
- Also Read: US Warns China Against Helping Russia In Ukraine War
- The U.S. threatened to punish Chinese companies that flouted its sanctions.
- Major U.S. chip companies that supply Chinese firms pressed customers to ensure their semiconductors were not in third-party goods shipped to Russia.
- China’s tech product exports to Russia fell sharply in March from February, with shipments of laptops declining more than 40%, smartphones down by nearly two-thirds, and exports of telecom base stations down 98%.
- China’s overall exports to Russia fell 27% in value from February to March, as per WSJ.
- China’s covid-related lockdown in Shanghai also disrupted its global trade.
- As U.S. sanctions hit Chinese companies, the actions threaten to widen the rift between countries on the Ukraine crisis and further galvanize China’s ambitions to develop supply chains independent of U.S. technology.
