Chinese Companies To Stop Business With Russia, Despite China Pressure
Beijing: Chinese companies DiDiChuxing and Hong Kong-based Lenovo have announced that they will cease their businesses in Russia although the Chinese authorities are pressuring the companies to continue their trade in the Russian market.
Notably, this decision of the companies follows in the backdrop of a US warning, which was sent to Chinese tech companies, stating that if companies continue their business relationship with the Russian market then sanctions would also be imposed on them.
Amidst this development, the largest chipmaker in China, Semiconductor Manufacturing International Corporation (SMIC) expressed its inability to continue its business as it used to do in Moscow as it doesn't want to take any risk in its balance sheet.
China can help Moscow during their financial crisis, but the US threatened Beijing that it can impose sanctions on all those countries whosoever does any type of trade with Russia, as per the US-based think tank, Foreign Policy Research Institute.
As per the rough estimate, the sanctions on Russia will impact on Chinese economy which is already in recession and the pandemic situation has further shaken its economy. So, Beijing will help Moscow is still speculation but for Russia, China is seen as the ray of hope as it is Moscow's top export market after EU, according to The Singapore Post.
Russia exported USD 79.3 billion worth of goods in 2021 to China, while China exported over USD 68 billion of goods to Russia in the same year, according to China's customs agency.
"If the US insists on going its own way, China will take strong countermeasures," China's Foreign Minister Wang Yi said as quoted by The Singapore Post,
China have the option to not follow the US orders but Beijing clearly knows their geopolitical situation, especially in the Taiwan Straits, so, China has to follow the US orders and will not violate the US and the EU-led sanctions by coming to the rescue of Russia.
On February 24, Russia began a special military operation in Ukraine after the Donetsk and Luhansk people's republics requested help in defending themselves. Western nations have imposed comprehensive sanctions on Moscow. In addition, they introduced sanctions on Belarus for supporting Russia's operation in Ukraine.
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