22.07.2022.

Chinese companies sell goods to Russia necessary for waging war

They decided to make money.

Chinese exports of microchips, electronic components and raw materials used for military purposes to Russia have increased since the start of the war in Ukraine. This complicates the task of isolating the economy of the Russian Federation and reducing its military potential.
The delivery of microcomponents from China to Russia has more than doubled compared to last year and amounted to about 50 million dollars in the first five months of 2022. Both small private companies and large Chinese state-owned companies trade with the Russian Federation, WSJ reports. They use a large number of intermediaries and affiliates to cover their tracks.
At the official level, Chinese officials constantly claim that they have no plans to sell weapons to Russia. In addition, the total flow of Chinese goods to the Russian Federation has significantly decreased - many companies are afraid of sanctions from the USA and do not risk cooperation with the Russian Federation.
In June, the US Department of Commerce blacklisted five Chinese technology companies that aided the Russian military industry before and after the start of the Russian military's invasion of Ukraine. However, that doesn't stop everything.
Researchers at C4ADS, an organization that monitors security threats, note that trade between China Poly Group, a conglomerate controlled by the Chinese government, and Russian defense firms is not decreasing.
Among other things, China Poly Group includes a key Chinese manufacturer of weapons, missile technologies and laser technologies for drone defense. In January, this company found itself under US sanctions for transferring rocket production technology to "another country", without specifying which country it was.
In the period from January 2014 to January 2022, China Poly Group affiliates concluded at least 281 deals with Russian companies and organizations, selling them various dual-use items - both for civilian and military use.
For example, as part of one of its recent deliveries, Poly Technologies sent antenna parts to the sanctioned Russian defense company Almaz-Antey. C4ADS researchers discovered Russian customs documents that say these antenna parts were intended specifically for the radar, which is part of Russia's S-400 air defense system.
In addition to radar components and semiconductors, China is helping to fill the gap in other materials that Russia cannot obtain from other suppliers. For example, exports of aluminum oxide, which is used in weapons development, have risen since March, when Australia refused to sell the material to Russia. Now the Russian Federation is buying it from Chinese companies — aluminum oxide exports to Russia in May reached 153,000 metric tons compared to 227 metric tons in May 2021.