Russia buys Chinese cars + India’s smartphone market

The international community has condemned the Russian attack on Ukraine and called for the withdrawal of Russia’s troops. China abstained from the historic vote at the emergency session of the United Nations General Assembly on Wednesday. The resolution fails to take the “the history and complexity of the current crisis” into account, Chinese UN Ambassador Zhang Jun said after the vote. Moreover, it did not express the urgency of a political settlement or considers the security concerns of all states involved, the ambassador said. However, China was willing to “continue to play a constructive role.” China’s abstention – along with 34 other states – is no surprise. Beijing has been trying a shaky balancing act of economic and political interests in the conflict for the past week.

Russia’s increasing isolation by the West could give Chinese car manufacturers a boost. Cars from the People’s Republic have already gained popularity in Russia in recent years. Chinese manufacturers already hold a larger market share over their Russian competitors. And the withdrawal of Western companies could now open up even larger gaps for brands like Chery and Haval, as Finn Mayer-Kuckuk analyzes. This is because Russia, unlike China, has never had a strategy of acquiring the know-how itself. In the end, the country could even become a satellite of China’s automotive sector.

China already dominates large parts of another market: Chinese smartphone brands dominate in India. However, almost all locally sold Chinese smartphones are produced in India, as Frank Sieren reports. The market share of domestic brands is shrinking dramatically in the process. However, the growing interconnection of technology could help ease the political tensions between the two nations.

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Amelie Richter