- Kyle Chua
Xiaomi, Lenovo Silently Cut Off Supplies to Russia, Alleges Report
Updated: May 10, 2022
Some Chinese tech giants have allegedly pulled out of the Russian market, seemingly succumbing to the pressure of Western sanctions and suppliers.
Most notable of which are Xiaomi and Lenovo, who both quietly cut off supplies to Russia, despite Beijing's call to resist U.S. threats. Citing sources familiar to the situation, The Wall Street Journal reports that the move comes amid a wave of massive financial sanctions and export controls imposed by the U.S. and its allies on Russia after its invasion of Ukraine a couple of months ago.
Large American chip manufacturers that supply these Chinese companies, for instance, have refused to break the rules and don't want their products entering Russia in fear of it being disassembled and used for other means. The U.S. has been strict about punishing companies that won't cooperate.
Both Xiaomi and Lenovo, however, have remained tight lipped about their business operations in the country and have not publicly confirmed pulling out.
China’s trade ministry last month acknowledged that the sanctions have indeed disrupted the country's business dealings with Russia, but it continues to urge local companies “not to be subjected to external coercion and to make inappropriate external statements". Chinese laptops to Russia, for example, fell by more than 40% between February and March. Smartphone exports fell by about two-thirds of its usual number during the same period.
Beijing notes that the recent surge in COVID-19 cases and quarantine restrictions in cities like Shanghai have also affected trade.
If the reports are true, Xiaomi and Lenovo join DJI among Chinese companies that are pulling out of the Russian market. The Shenzhen-based drone maker in late-April announced it would halt business activities in Russia and Ukraine to avoid its products from being weaponised in the ongoing conflict. Beijing-based ride-hailing platform Didi Global in February also announced it would shutter operations in Russia and Kazakhstan, but later backtracked its decision after intense criticism from Chinese social media users.
Some Chinese tech giants have allegedly pulled out of the Russian market, seemingly succumbing to the pressure of Western sanctions and suppliers.
Most notable of which are Xiaomi and Lenovo, who both quietly cut off supplies to Russia, despite Beijing's call to resist U.S. threats.
China's trade ministry acknowledged that the country's trade with Russia have indeed been disrupted, with smartphone exports, for example, falling by two-thirds its usual number between February and March this year.
Beijing continues to urge Chinese companies "not to subjected to external coercion".