China Conscious of US Sanctions on Russia? "Significant Reduction in Russian Electronics Exports"

Chinese President Xi Jinping and Russian President Vladimir Putin
[Photo by Yonhap News]

[Asia Economy Reporter Jeong Dong-hoon] Since Russia's invasion of Ukraine, China has also reduced its exports of electronic products to Russia.

On the 17th (local time), according to the U.S. daily The Washington Post (WP), U.S. Secretary of Commerce Gina Raimondo cited recently released Chinese trade statistics, stating that China's laptop exports to Russia in March, after the invasion, decreased by 40% compared to February.

During the same period, smartphone exports dropped to one-third, and exports of telecommunications network equipment plummeted by 98%. Secretary Raimondo explained that this is a sign that China is being cautious about violating sanctions.

According to U.S. sanctions on Russia, products made using U.S.-produced equipment or software cannot be exported to Russia. The U.S. and 38 other countries have imposed trade sanctions to strike Russia's military and economy. Accordingly, exports of semiconductors (chips), telecommunications equipment, lasers, and avionics are restricted.

Although exports of consumer goods such as smartphones and laptops are not completely blocked, according to trade-related lawyers, some companies have entirely stopped exporting electronic products to Russia regardless of whether they violate sanctions.

Many big tech companies, including U.S. Apple, South Korean Samsung Electronics, and Chinese drone companies DJI and Xiaomi, have also halted exports to Russia or suspended business activities within Russia.

Secretary Raimondo said, "I am often asked whether export controls are effective. The answer is a complete and emphatic 'yes.'"

She explained that exports of controlled items to Russia from the U.S. have dropped by 86%, and exports from South Korea and Finland to Russia have decreased by 62% and 60%, respectively.