Chinese small businesses likely to join Russian market
After European brands stop their operation in Russia, small businesses of China will enjoy an excellent opportunity to come instead. At the same time, large Chinese state-run enterprises will act cautiously, fearing possible consequences of violating anti-Russian sanctions imposed by the West, RIA Novosti reports.
According to South China Morning Post, Wang Chuanbao, the President of the Federation of Overseas Chinese in Moscow, believes the gap left by western brands in Russia has led to an imbalance of supply and demand, undoubtedly generating new business opportunities. “The sanctions this time are more severe and expansive. Chinese traders need to spend some time carefully considering ways to fill these industry holes and secure a place in the Russian market," he stressed.
According to Zhuang Bo, an economist and China expert at the investment company Loomis, Sayles & Company, major Chinese state-run enterprises will be afraid to violate the anti-Russian sanctions of the West, because the United States and its allies are monitoring the actions of the Chinese side and may apply penalties if China supports Russia. “Companies do not actively seek to violate sanctions. Instead, they are trying to find hidden ways to work behind the scenes," he stated.
Meanwhile, as the expert noted, Chinese small businesses can effectively take advantage of the current situation owing to their more flexible payment methods and logistics.