China-Russia relations: Chinese producers lament loss of once-lucrative Russian deals

Gone are the days when Russia was a reliable source of big profits for Chinese producers, who have become wary of running afoul of Western sanctions

Before the war, more than 40 per cent of Chinese exports to Russia comprised various kinds of machinery and electrical equipment, but deliveries of such goods have since plunged

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Fewer orders from Russia, coupled with a fear of Western sanctions among Chinese producers, have suppressed the flow of goods between the neighbours. Photo: Reuters

Published: 7:30pm, 21 May 2022Updated: 11:13am, 13 Feb 2023

At a machinery exporter in the Chinese megacity of Nanjing, He Liyuan was dubbed “sales champion” last year – a distinction that the sales manager earned while focusing on the Russian market.

But it’s looking unlikely that she will repeat that success in 2022, as she has not received any new orders from clients this year, only four cancellations.

“Our total exports to Russia last year were US$9.4 million, and the year before they were US$10 million, but so far there have been none this year – just zero,” He said.

“The war has killed orders.”

Since Russia invaded Ukraine, setting off an escalating series of Western sanctions, Beijing has repeatedly claimed that China will “maintain normal trade relations” with its northern neighbour, even in the face of mounting Western pressure.

But the trade data appears to tell a different story, and so have Chinese exporters. Shrinking demand from Russia – fuelled by unprecedented sanctions, wariness among Chinese multinational companies fearing collateral damage, and problematic hurdles regarding payments and shipping – is suppressing the flow of goods between the two countries.