China’s big tech assess opportunities in Russia!
As Western tech companies halt sales to Russia following its invasion of Ukraine, Chinese rivals have an opportunity to capitalize on their departure!
Companies that have suspended sales to Russia include smartphone makers Apple Inc. and Samsung, HP Inc. and Dell Technologies Inc.
Their exits come as expansive sanctions by the U.S. and allies on Russia prompt companies to review business ties there.
Chinese tech giants however, have stayed silent and show no signs of joining the exit.
Many have built strong ties in Russia over recent decades, capturing more than 40% of the market for some tech products. WSJ reports
*WSJ Tweet on China’s big tech dilemma
Chinese tech companies have an opportunity to capitalize as Western rivals halt sales to Russia following its invasion of Ukraine, but it might not be easy given the mounting obstacles https://t.co/bbLlH8fGCp
— The Wall Street Journal (@WSJ) March 7, 2022
They often take their cue from Beijing, which has declared its opposition to U.S. sanctions.
While Russia is a small tech market by global standards,
It only accounts for about 2% of global smartphone and PC shipments, but it is Europe’s largest phone market and a competitive tech battleground where Western brands collide with Chinese rivals for top billing.
*OEC via BBC Chart on Russia’s export destinations
OEC Trade chart between Russia &China, last survey Nov 21
China’s Xiaomi Corp. is Russia’s No. 2 phone seller, positioned in- between South Korea’s market leader Samsung, and U.S Apple, according to market tracker Counterpoint Research.
Lenovo Group. is the second-largest PC seller in Russia. behind HP, which led the market last year with a 21% share, according to International Data Corp.
While, Huawei Technologies Co. is Russia’s top telecom-equipment vendor and competes with Ericsson for 5G contracts.
*Russia has highest trade rate with China for a 5 years in a row
