China’s private firms see Russia as land of opportunity, up for grabs amid West’s exodus

Name: Coca-Cola, McDonald’s and Starbucks all suspend Russia operations in landmark move
Uploaded: 2022-03-28T20:30:16.000Z
Duration: 2 min 11 s
Description: Coca-Cola, McDonald’s and Starbucks all suspend Russia operations in landmark move

But experts say China’s state-owned enterprises are likely to remain cautious, worried about the potential diplomatic fallout of running afoul of Western sanctions on Russia

Smaller businesses may be more likely to take the advice of China’s ambassador to Russia, to ‘fill the void in the Russian market’

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China’s trade with Russia could be boosted as smaller private Chinese firms look to fill the void left as many Western companies have pulled out of Russia. Photo: Getty Images

Luna Sun

Published: 4:30am, 29 Mar 2022Updated: 5:00am, 29 Mar 2022

From car parts to food and household cleaners, smaller private firms in China are seeking ways to capitalise on the “void” left by a mass exodus of high-profile Western brands from the Russian market.

But the outlook for state-owned companies and banks is a little foggier.

Western sanctions over the war in Ukraine have sent the likes of Ford, Coca-Cola and other iconic brands heading for the exit in Russia. This has created opportunities for Chinese firms, despite warnings from the United States and its allies over providing assistance to help circumvent the various bans and restrictions imposed on Russia.

After seeing a number of car companies drop out of the Russian market, Li Dan decided to expand her company in Moscow to also make and sell car parts for American and European brands.

For years, she solely made and sold parts for Russian cars, but after Ford and Volkswagen were among those to exit the market, she came to the conclusion that Audi, Ducati, Skoda and Porsche might soon need to repair their cars in the country.

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Coca-Cola, McDonald’s and Starbucks all suspend Russia operations in landmark move

“The US and European cars in Russia will need repair at some point, and that will be a problem in the future,” Li said. “Those dealers who directly import cars or parts from the US or EU market – they will have to seek more stable cooperation from China from now on because of the sanctions.”