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29 Mar, 2022 10:49

Chinese firms look to cash in on Western exodus from Russia – media

Small and medium enterprises to fill void after companies left country
Chinese firms look to cash in on Western exodus from Russia – media

Chinese small and medium-sized companies are exploring opportunities in the Russian market that have become available with the exit of many Western firms, the South China Morning Post reported on Tuesday.

“Chinese companies in some niche sectors will especially benefit from the EU and US [companies] leaving Russian markets, such as in auto parts, foods, medical supplies and infrastructure components,” said Zhuang Bo, a China economist at investment firm Loomis, Sayles & Company, as quoted by Morning Post.

The analyst added that the entry of Chinese businesses into the Russian market is expected to create a major impetus for mutual trade between the two countries.

“Trade between the two countries will most definitely increase in size in the next couple of years, and the pace will pick up as well,” Zhuang said.

The exodus of Western businesses from Russia has led to an imbalance of supply and demand, undoubtedly generating new business opportunities, the president of the Federation of Overseas Chinese in Moscow, Wang Chuanbao, was quoted by media as having said.

“We will actively assist incoming Chinese companies in studying and collaborating with the Russian market, as well as explore ways to work with Russian companies under the backdrop of the Belt and Road strategic development,” Wang said.

However, Chinese state-owned majors are expected to remain wary of breaching Western sanctions for now, the analysts have also said.

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