Business with Russia is becoming a risk for China’s tech companies

Beijing The warning from Washington is clear: the US government could “essentially shut down” Chinese tech companies if they circumvent western sanctions against Russia, Secretary of Commerce Gina Raimondo said in an interview with the New York Times on Tuesday. This could affect the largest Chinese semiconductor group, Semiconductor Manufacturing International Corporation (SMIC).

The Chinese foreign ministry responded immediately to the threat: all measures would be taken to protect the rights and interests of Chinese companies.

Due to the Russian invasion of Ukraine, numerous US tech companies have announced in the past few days that they will at least temporarily stop their business in Russia, including Apple, Dell and HP. Samsung from South Korea and the leading semiconductor manufacturer TSMC from Taiwan have joined the boycott.

Chinese corporations such as the IT equipment supplier Huawei, SMIC or smartphone manufacturer Xiaomi, on the other hand, have not publicly commented on the Ukraine war, raising the suspicion that they are profiting from the withdrawal of Western competition.