A series of Western technology firms withdrew from Russia, opening opportunities for Chinese companies

Tram Ho

The massive withdrawal of Western technology firms from Russia is creating a large gap in the market that needs to be filled. None other than Chinese companies are working to fill this void.

However, this may not be easy given the growing transport, financial and legal difficulties.

Although Russia is a relatively small tech equipment market by global standards – it accounts for only about 2% of global smartphone and computer shipments – it is also Europe’s largest mobile market and is a competitive technology playground between Western brands and rivals from China.

 

Hàng loạt hãng công nghệ phương Tây rút khỏi Nga, cơ hội mở ra cho các công ty Trung Quốc - Ảnh 1.

Currently, according to Counterpoint Research, Xiaomi is the second largest phone brand in Russia, sandwiched between the leader Samsung and the third-ranked Apple. Meanwhile, Lenovo is the second largest PC supplier in Russia, after HP. Huawei is currently the leading network equipment supplier in Russia and is competing with Ericsson for 5G contracts.

Meanwhile, along with many Western technology firms withdrawing from Russia, the US and its allies have also imposed a series of sanctions on this country, including banning the export of products for the defense sector. Russia as well as products made from American equipment, software and equipment.

This further creates a shortage of consumer electronics such as computers and phones, but opens the door to Chinese suppliers. However, there are still difficult to solve difficulties ahead in terms of transport capacity, payment as well as export control orders of the US and its allies.

Hàng loạt hãng công nghệ phương Tây rút khỏi Nga, cơ hội mở ra cho các công ty Trung Quốc - Ảnh 2.

The ban on the export of products made with US technology to Russia is similar to what Washington imposed on Huawei in 2020. For Huawei, the ban has caused the Chinese tech giant to stumble as the Companies around the world – including many Chinese ones – stopped selling to them. The same thing is likely to repeat with Russia.

That is why many analysts believe that Chinese companies will not want to take risks to expand operations in the Russian market.

Chinese companies have more to lose than gain from violating sanctions. For most Chinese companies, Russia is too small a market relative to the risk of being eliminated from the markets. develop differently or be punished .” Analysts at Gavekal Dragonomics said.

Last Wednesday, China’s Global Times newspaper published an article about the opportunities for Chinese smartphone and car makers in Russia as American rivals withdrew. Not long after that, the article was taken down.

Refer to WSJ

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Source : Genk