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Xiaomi and Lenovo have so far refused to do business privately with Russia – WSJ

  • May 7, 2022
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It is noted that Chinese technology giants are reluctant to do business with Russia for fear of exposure to Western sanctions, despite China’s opposition to their entry into

Xiaomi and Lenovo have so far refused to do business privately with Russia – WSJ

It is noted that Chinese technology giants are reluctant to do business with Russia for fear of exposure to Western sanctions, despite China’s opposition to their entry into Russia.

Lenovo and Xiaomi don’t want to trade with Russia

For example, Chinese technology giants Lenovo and Xiaomi have joined companies that refuse to cooperate with the aggressor country. It is worth noting that Lenovo is the world’s largest computer manufacturer and the second largest equipment vendor in Russia. Immediately after Russia’s full-scale attack on Ukraine, Lenovo cut supplies and restricted sales in Russia.

As for Xiaomi, the company occupies the second place among the sellers of smartphones in Russia. It also decided to cut off the supply after sanctions were imposed. Also, in a meeting with WSJ, a representative of one of the distributors in the region said that the company had not made any deliveries for several weeks.

Equipment exports to Russia fell sharply

Following the imposition of large-scale sanctions, some Russian companies had hoped to continue cooperating with Chinese companies, but exports of technological products from China to Russia have fallen since March.

  • laptop shipments dropped 60%;
  • smartphones are imported 40% less;
  • Operators and providers suffered the most, losing 98% of their base stations and other telecommunication products.

This is because major US manufacturers supply chips to Chinese manufacturers and insist on complying with sanctions. As a result, Lenovo is reluctant to be subject to any restrictions by the United States. According to Steve Brazer, Canalys chief marketing officer, “It will be a disaster for Lenovo, so the company has a strong motivation to follow suit.”

At the same time, China is trying to protect itself from US sanctions in some other way. The government recently ordered government agencies to get rid of foreign computers. Now trying to balance Russia with the West, China understands that Moscow’s support may pay a heavy price, and has even been warned. Therefore, it seems logical for a country that has not yet been subject to sanctions and has time to prepare for a possible strike, replacing American and European technologies.

Source: 24 Tv

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