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Chinese tech firms may follow DJI to cut Russia and Ukraine exposure to minimise political, sanctions risk, experts say
- DJI has temporarily suspended operations in Russia and Ukraine, after being accused that its products were used for military activities in the Ukraine war
- Previous sanctions by the US government have seen DJI’s market share fall to 54 per cent last year from nearly 80 per cent a year earlier
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Chinese companies are expected to follow drone maker DJI in halting operations in Russia and Ukraine, in a bid to appear neutral and shake off mounting political pressure from both Beijing and Washington amid the Ukraine war, experts say.
Unlike their Western counterparts, few tech Chinese companies have stepped up to make their positions clear on their Russian businesses partly because the Chinese government officially opposes sanctions imposed by Western countries on Moscow. At the same time, Chinese companies are quietly assessing the risk of “secondary sanctions” if they keep supplying Russia with products that may involve US technologies.
Last week, Shenzhen-based DJI said that it would temporarily suspend all businesses in Russia and Ukraine, after being accused that its products were used for military activities in the Ukraine war.
It is the first time a Chinese company has publicly announced suspension of business in Russia despite Beijing’s official stance. Huawei Technologies, a Chinese telecoms equipment giant already under US sanctions, has reportedly suspended certain operations in Russia, although the company has not confirmed the reports.
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Experts say DJI’s decision to curtail business in both countries might set a precedent for Chinese companies trying to walk a fine line between China’s political push and US sanctions.
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