Concerns Over Secondary Boycott Hinder Chinese Companies from Taking Initiative
China's Machinery and Electronics Industries Hold Export-Import Consultations with Russia in May-June
[Asia Economy Beijing=Special Correspondent Jo Young-shin] Chinese state media reported that Russian companies have expressed interest in importing semiconductor chips and other products from China. This is the first report since Russia's invasion of Ukraine that Russia, under sanctions from the US and other Western countries, hopes to import Chinese-made semiconductors and other components.
The state-run Global Times reported on the 12th that inquiries from Russian companies about importing Chinese-made components such as semiconductors have recently increased.
The media cited industry sources, saying that inquiries related to electrical and mechanical equipment from Russia are on the rise, and Chinese companies are carefully reviewing the matter.
The Global Times further reported that while Chinese companies want to supply according to Russia's demand, actual exports have not materialized. Due to concerns over secondary boycotts by the US and other Western countries (sanctions on third-country organizations, individuals, and companies trading with Russia), Chinese companies are not actively engaging in exports.
The Chinese-made products that Russia hopes to import are known to include machine tools, excavator parts, and chips for card payments.
The media also reported that the China Chamber of Commerce for Import and Export of Machinery and Electronic Products (CCCMB) plans to hold consultation meetings with Russian companies in May and June, but it is uncertain whether these will lead to actual transactions. Issues such as currency and fund transaction systems and transportation were pointed out.
Additionally, the US secondary boycott is also cited as an obstacle.
An industry source said, "Trading with Russia depends on the independent decision of Chinese companies," adding, "Chinese companies will approach the issue of exports to Russia cautiously."
The media explained that the semiconductor chips Russia wants are those attached to bank cards, and these chips only require basic technology without data storage capabilities.
Meanwhile, the Global Times criticized the US for imposing sanctions on Russia on countries including China, while it has recently continued to import Russian crude oil and uranium itself.
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