China Fills Void as Foreign Brands Flee Russian Market During War

[beijingwalker]

China Fills Void as Foreign Brands Flee Russian Market During War​

• Chinese vehicles were 81% of new car imports last quarter
• War in Ukraine has accelerated Russia’s tilt toward Asia

Bloomberg News
August 30, 2022, 4:00 PM UTC

Chinese cars, televisions and smartphones are replacing German and South Korean imports in Russia as its market is reshaped by sanctions and an exodus of brands in the wake of Vladimir Putin’s invasion of Ukraine.

The result is upending trade, with Russia seeking to insulate itself from further disruptions by pivoting to goods from countries that haven’t joined sanctions imposed by the US and its allies. Moscow is also rewriting rules to allow its sovereign wealth fund to invest in the currencies of China, India and Turkey, after penalties blocked euro and dollar purchases.

“Apart from Chinese cars, there is nothing out there at all,” said Vladimir, a metals industry executive who bought a new Chery Automobile Co. Tiggo SUV in Moscow this month. He declined to give his last name.

“Still, there’s a decent amount of choice and, surprisingly, the cars are very good,” he said.

The war has accelerated Russia’s tilt toward Asia, with shifts that had previously taken years happening in months. The transformation draws a line under a process begun near the start of Putin’s more than two-decade rule, with similar changes sweeping the economy from the banking sector to energy sales.

Sales of Great Wall Motor Co. and Geely Automobile Holdings Ltd. vehicles held steady in July, even as the auto market collapsed by 75% compared to a year earlier, propelling their brands into the ranks of best-selling cars. Last quarter, 81% of new car imports were Chinese, compared with 28% in the first quarter, according to Avtostat data.

The Russian central bank said in an Aug. 24 report that business sentiment in the auto trade turned positive for the first time since the February invasion as the market shifted from European producers to Asian cars.

Samsung Dethroned​

The smartphone market has also shifted in China’s favor, with Apple Inc. and Samsung Electronics Co. suspending shipments. While their products are available via parallel, or gray, imports that don’t have the manufacturers’ blessing, such sales can put off consumers because they are more expensive and not under warranty.

Xiaomi Corp. was Russia’s best-selling smartphone maker in the second quarter, dethroning Samsung, and three of the top five brands were Chinese, according to Mobile TeleSystems PJSC, the country’s biggest mobile operator.

“There is a redistribution going on,” said Alexey Zaitsev, the head of e-commerce platform Ozon Holding Plc’s telecommunications division. “We are seeing increased demand for Android smartphones of Chinese brands.”

Demand for Chinese television sets nearly doubled after the invasion as Japanese and Korean companies stopped shipments, Izvestia newspaper reported last month, citing online retailers.

The boom comes as retail sales have suffered their worst crash since the coronavirus pandemic, shrinking close to 10% each month on an annual basis in April-June. Spending by households in Russia accounts for more than half of gross domestic product.

Yuan Trading​

Trade with Beijing was rising even before the war, and China supplying about 25% of Russia’s total imports last year. Yet the relationship is asymmetrical, with the Russian market accounting for 2.3% of Chinese exports.

Moscow needs the supplies more than ever as its consumers facing a future with fewer choices. Russia bought $6.7 billion of goods last month from China, up by more than 20% from a year earlier. Bilateral trade, fueled by higher energy prices, could grow by more than a third to $190 billion in 2022, Tass reported Aug. 17, citing a Russian official.

With China an ever-more essential partner, yuan trading has risen more than 40-fold on the Moscow Exchange so far this year and “has now started to dominate trading in other more traditional currencies,” according to Ivan Tchakarov, Citigroup’s chief economist for Russia.

More Chinese companies are figuring out how to import into Russia without running afoul of sanctions, according to Boris Kopeikin, an analyst at the Center for Strategic Research, a Moscow-based think tank.

“The pace is picking up and by the end of the year we will see much wider choice of Chinese goods,” Kopeikin said.

China Fills Void as Foreign Brands Flee Russian Market During War

Chinese cars, televisions and smartphones are replacing German and South Korean imports in Russia as its market is reshaped by sanctions and an exodus of brands in the wake of Vladimir Putin’s invasion of Ukraine.

www.bloomberg.com

 

[khansaheeb]

China Fills Void as Foreign Brands Flee Russian Market During War​

• Chinese vehicles were 81% of new car imports last quarter
• War in Ukraine has accelerated Russia’s tilt toward Asia

Bloomberg News
August 30, 2022, 4:00 PM UTC

Chinese cars, televisions and smartphones are replacing German and South Korean imports in Russia as its market is reshaped by sanctions and an exodus of brands in the wake of Vladimir Putin’s invasion of Ukraine.

The result is upending trade, with Russia seeking to insulate itself from further disruptions by pivoting to goods from countries that haven’t joined sanctions imposed by the US and its allies. Moscow is also rewriting rules to allow its sovereign wealth fund to invest in the currencies of China, India and Turkey, after penalties blocked euro and dollar purchases.

“Apart from Chinese cars, there is nothing out there at all,” said Vladimir, a metals industry executive who bought a new Chery Automobile Co. Tiggo SUV in Moscow this month. He declined to give his last name.

“Still, there’s a decent amount of choice and, surprisingly, the cars are very good,” he said.

The war has accelerated Russia’s tilt toward Asia, with shifts that had previously taken years happening in months. The transformation draws a line under a process begun near the start of Putin’s more than two-decade rule, with similar changes sweeping the economy from the banking sector to energy sales.

Sales of Great Wall Motor Co. and Geely Automobile Holdings Ltd. vehicles held steady in July, even as the auto market collapsed by 75% compared to a year earlier, propelling their brands into the ranks of best-selling cars. Last quarter, 81% of new car imports were Chinese, compared with 28% in the first quarter, according to Avtostat data.

The Russian central bank said in an Aug. 24 report that business sentiment in the auto trade turned positive for the first time since the February invasion as the market shifted from European producers to Asian cars.

Samsung Dethroned​

The smartphone market has also shifted in China’s favor, with Apple Inc. and Samsung Electronics Co. suspending shipments. While their products are available via parallel, or gray, imports that don’t have the manufacturers’ blessing, such sales can put off consumers because they are more expensive and not under warranty.

Xiaomi Corp. was Russia’s best-selling smartphone maker in the second quarter, dethroning Samsung, and three of the top five brands were Chinese, according to Mobile TeleSystems PJSC, the country’s biggest mobile operator.

“There is a redistribution going on,” said Alexey Zaitsev, the head of e-commerce platform Ozon Holding Plc’s telecommunications division. “We are seeing increased demand for Android smartphones of Chinese brands.”

Demand for Chinese television sets nearly doubled after the invasion as Japanese and Korean companies stopped shipments, Izvestia newspaper reported last month, citing online retailers.

The boom comes as retail sales have suffered their worst crash since the coronavirus pandemic, shrinking close to 10% each month on an annual basis in April-June. Spending by households in Russia accounts for more than half of gross domestic product.

Yuan Trading​

Trade with Beijing was rising even before the war, and China supplying about 25% of Russia’s total imports last year. Yet the relationship is asymmetrical, with the Russian market accounting for 2.3% of Chinese exports.

Moscow needs the supplies more than ever as its consumers facing a future with fewer choices. Russia bought $6.7 billion of goods last month from China, up by more than 20% from a year earlier. Bilateral trade, fueled by higher energy prices, could grow by more than a third to $190 billion in 2022, Tass reported Aug. 17, citing a Russian official.

With China an ever-more essential partner, yuan trading has risen more than 40-fold on the Moscow Exchange so far this year and “has now started to dominate trading in other more traditional currencies,” according to Ivan Tchakarov, Citigroup’s chief economist for Russia.

More Chinese companies are figuring out how to import into Russia without running afoul of sanctions, according to Boris Kopeikin, an analyst at the Center for Strategic Research, a Moscow-based think tank.

“The pace is picking up and by the end of the year we will see much wider choice of Chinese goods,” Kopeikin said.

China Fills Void as Foreign Brands Flee Russian Market During War

Chinese cars, televisions and smartphones are replacing German and South Korean imports in Russia as its market is reshaped by sanctions and an exodus of brands in the wake of Vladimir Putin’s invasion of Ukraine.

www.bloomberg.com

Why is Pakistan leaving itself out even when times are desperate?:-

 

[Yongpeng Sun-Tastaufen]

Why is Pakistan leaving itself out even when times are desperate?:-

View attachment 875059

Pakistan has no technology. China has technology.

Hisense TV's Volume Share of Shipment Ranked Top 2 Worldwide, Maintaining Growth for 3 Consecutive Years

According to the latest data released by market research agency Omdia, Hisense TV ranked second in worldwide volume share of shipment in the Q2 of 2022, only nexy to Samsung; Worldwide volume share and worldwide revenue share of Hisense TV ranked first among Chinese brands, and continue to lead.

ca.finance.yahoo.com

 

[beijingwalker]

Now China is reselling Russia gas to Europe

 

[Viet]

That’s the new democratic world order Sergei Lavrov wants: buying chinese products instead of western products. Putin hates the west so much that he pushes Russia deeper into chinese dependency. Made in China will flood Russia and kill off all manufacturing. I wouldn’t be surprised when Chinese raise the prices double or triple once they control the russian market.

 

[Yongpeng Sun-Tastaufen]

That’s the new democratic world order Sergei Lavrov wants: buying chinese products instead of western products. Putin hates the west so much that he pushes Russia deeper into chinese dependency. Made in China will flood Russia and kill off all manufacturing. I wouldn’t be surprised when Chinese raise the prices double or triple once they control the russian market.

Russia became friend with the West during Gorbachev's time. In 1990 the first McDonald's store opened in Russia. It is a shame the West chose to be enemy of Russia by arming Ukrainians to slaughter Russians in 2014. It is a shame the West chose war instead of peace. Shame.

 

[beijingwalker]

That’s the new democratic world order Sergei Lavrov wants: buying chinese products instead of western products. Putin hates the west so much that he pushes Russia deeper into chinese dependency. Made in China will flood Russia and kill off all manufacturing. I wouldn’t be surprised when Chinese raise the prices double or triple once they control the russian market.

Russia isn't that dependent on China, the west is.

 

[Viet]

Russia isn't that dependent on China, the west is.

You are delusional that’s not one sided. dependency is mutual. What happens if the west and China go to full trade war?
I tell you for Germany, the biggest economy in Europe: 0.81 percent of GDP of Germany.
That is expected loss if Germany and China go head to head to trade war.
Germany will suffer however not collapsing as you believe.

 

[Yongpeng Sun-Tastaufen]

Chinese consumer electronics are top notch. Not even Germany can make a good TV these days. So it makes sense Chinese TV is popular in Russia, and it has more to do with quality than with Western or South Korean or Japanese sanction in the Russian consumer electronics market. @Viet

Hisense Vs Samsung. (Is Hisense TV Better Than Samsung)

Both Hisense and Samsung TVs have strong points, but Hisense is better in one major area: price.

smarthomestarter.com

 

[Beast]

That’s the new democratic world order Sergei Lavrov wants: buying chinese products instead of western products. Putin hates the west so much that he pushes Russia deeper into chinese dependency. Made in China will flood Russia and kill off all manufacturing. I wouldn’t be surprised when Chinese raise the prices double or triple once they control the russian market.

Another sourgrape loser.

 

[tower9]

That’s the new democratic world order Sergei Lavrov wants: buying chinese products instead of western products. Putin hates the west so much that he pushes Russia deeper into chinese dependency. Made in China will flood Russia and kill off all manufacturing. I wouldn’t be surprised when Chinese raise the prices double or triple once they control the russian market.

They wouldn't be doing this if China was not actively hurting Russia's interests. You don't seem to understand the laws of cause and effect.

 

[Yongpeng Sun-Tastaufen]

They wouldn't be doing this if China was not actively hurting Russia's interests. You don't seem to understand the laws of cause and effect.

Arming Ukrainians to slaughter Russians and they expect Russians to be idiots just lying there waiting to be genocided. Puh! Silly Westerners.

 

[beijingwalker]

You are delusional that’s not one sided. dependency is mutual. What happens if the west and China go to full trade war?
I tell you for Germany, the biggest economy in Europe: 0.81 percent of GDP of Germany.
That is expected loss if Germany and China go head to head to trade war.
Germany will suffer however not collapsing as you believe.

Germany suffers more than Russia if both had a trade war with China, this is way I say , comparing to Russia, the west is more dependent on China.

 

[MeFishToo]

2% of Chinas total export goes to Russia, while about 50% goes to countries sanctioning Russia. Meanwhile China is Russias main export marked.
Why would China risk its main export marked to help Russia out of a situation they basically not support.

 

[Yongpeng Sun-Tastaufen]

2% of Chinas total export goes to Russia, while about 50% goes to countries sanctioning Russia. Meanwhile China is Russias main export marked.
Why would China risk its main export marked to help Russia out of a situation they basically not support.

China is not interested in the internal squabbles between the West and Russia. What China's goal is to supply Russian civilians with consumer products so they do not do a color revolution to overthrow Putin.

Because Western, South Korean, Japanese companies left the Russian civilian market, without Chinese support, the Russian civilians would have nothing and they would do color revolution to overthrow Putin, and that is what China does not want. China does not want color revolution in Russia, so China supplies consumer electronics to Russia to prevent color revolution in Russia.