Shipments of electronics and chips to Russia from China and Hong Kong have declined this year, but China remains a key supplier of chips for Russia's defense sector to circumvent Western sanctions.
Points of attention
- China maintains its status as a major chip supplier for Russia's defense sector despite sanctions imposed by the US and the EU.
- Shipments of electronics and chips from China and Hong Kong to Russia have declined, prompting companies to seek alternative routes through Hong Kong to bypass sanctions.
- Customs data reveals significant volumes of electronics, including Nvidia chips and Vectrawave microprocessors, entering Russia, highlighting the ongoing trade dynamics.
- The ease of registration of firms in Hong Kong facilitates the continuation of trade in electronics to Russia amid efforts to circumvent sanctions and strengthen control over supply chains.
- The US has managed to limit the supply of electronics from China to Russia, identifying China and Hong Kong as key hubs for supplying Russia with electronics for the military industry.
What is known about shipments of chips and other electronics from China to Russia
Journalists of the publication, referring to the data of the US Ministry of Commerce, emphasize that during the period from January to May this year, the supply of electronics from Hong Kong to Russia decreased by 28%.
We are talking about advanced components, microelectronics, which, according to the representatives of the USA and EU countries, Russia can use in the war against Ukraine.
At the same time, transit shipments of these goods through mainland China, excluding Hong Kong, fell by 19%.
The US considers China and Hong Kong to be key hubs for supplying Russia with electronics for the military industry.
In particular, we are talking about supplies of semiconductors and components for UAVs.
I think there's some reason to be at least optimistic that we've been able to slow down some of that trade. China is still our number one problem, one of the American officials told the journalists of the publication.
The State Department and the US Treasury have introduced several packages of sanctions against individuals and legal entities around the world who maintain ties with Russia's defense sector.
According to the American official, the decrease in the volume of electronics from China and Hong Kong to Russia occurred due to several factors.
In particular, the US authorities managed to aggressively apply the provisions of the law and interacted with companies that supply products to other countries.
What electronics and in what quantity did Russia receive from China and Hong Kong
A separate set of customs data by the Washington-based non-profit Global Security Organization found that more than 200 Hong Kong-registered firms shipped nearly $2 billion worth of goods to Russian buyers between August and December 2023.
A report by the Hong Kong Freedom Committee (CFHK) found that between August and December 2023, US$750 million worth of sanctioned goods were shipped through Hong Kong, from high-end chips from Nvidia and France's Vectrawave to cheap chips from Texas Instruments and Intel .
Customs data from 2023 showed that two shipments of Nvidia valued at $1.58 million and $1.21 million were sent to the Moscow firm Lotus by a shipper called Malachor Electronics with an address in a luxury office building in Hong Kong's central business district.
Between August and December last year, Hong Kong shippers shipped a total of $17.6 million worth of Nvidia products to Russia after they were sold in countries such as China, Taiwan, Turkey, Thailand, Serbia and the UAE.
Jetson TX2 artificial intelligence systems, which are used in the drones of the criminal army of the Russian Federation that attack Ukraine, were present in the party.
Used Jetsons are available through many secondhand channels. Although we cannot track products after they are sold, if we determine that any buyer is violating US export controls, we will take appropriate action, Nvidia representative John Rizzo emphasizes.
In addition, two batches of Vectrawave semiconductors worth $1 million each, labeled as microprocessors, were shipped to Russia.
Journalists of the publication emphasize that the reason for the continued supply of electronics to Russia is the ease of establishing and registering new firms in Hong Kong, which led to an increase in the number of shipping and logistics companies and other intermediaries, which also contributed to limiting trade and money flows with Iran and North Korea.
Some of them were sanctioned by the American authorities.
During visits to industrial buildings in Hong Kong, located near the city's container port Kwai Chung, representatives of the publication found closed offices of shippers indicated in customs and corporate documents.
One of the firms, Align Trading, a Vectrawave chip shipper, had an address that was a musty room littered with hundreds of registration forms from Hong Kong companies.
More on the topic
- Category
- World
- Publication date
- Додати до обраного
