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Chinese Tech Firms Weigh Opportunities in Russia After Western Pullout

Seizing market share from Apple, HP and others ceasing sales amid Ukraine war might not be so easy given mounting obstacles
China’s Huawei is the top seller of telecom equipment in Russia. PHOTO: SERGEI KARPUKHIN/ZUMA PRESS

China’s Huawei is the top seller of telecom equipment in Russia. PHOTO: SERGEI KARPUKHIN/ZUMA PRESS

HONG KONG—As Western tech companies halt sales to Russia following its invasion of Ukraine, their Chinese rivals have an opportunity to capitalize on their departure. Doing so won’t be easy in the face of growing logistical, financial and legal hurdles.

Companies that have suspended sales to Russia include smartphone makers Apple Inc.AAPL -1.84% and Samsung Electronics Co. , PC manufacturers HP Inc. and Dell Technologies Inc., and telecoms-gear provider Ericsson AB. Their exits come as expansive sanctions by the U.S. and allies on Russia prompt companies to review business ties there.

Chinese tech giants, however, have stayed silent and show no signs of joining the exit. Many have built strong ties in Russia over recent decades, capturing more than 40% of the market for some tech products. They often take their cue from Beijing, which has declared its opposition to U.S. sanctions.

While Russia is a small tech market by global standards—it accounts for about 2% of global smartphone and PC shipments—it is Europe’s largest phone market and a competitive tech battleground where Western brands vie with Chinese rivals for top billing.


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Author: Editors Desk

Source: WSJ:

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