Flights to China + Tech Sanctions
The Russian invasion of Ukraine continues to cast a shadow on everything else. Among other things, Europe and Russia have now closed-off each other's airspace. The impacts are obvious: longer flight times, higher costs, and additional pressure on already heavily strained supply chains. After all, the air route to China has suddenly been extended by 1,200 kilometers. But even in this dispute, the old truism applies: When two quarrel, a third rejoices. Finn Mayer-Kuckuk explains why this third party is mostly Air China Cargo in this case, and how Asian airlines benefit from the European-Russian sanctions spiral.
Our second analysis of today also examines the consequences of European sanctions against Russia. Specifically, it is about punitive measures in the high-tech sector. The focus is primarily on semiconductors, computers, mobile phones, and other high-tech commodities that Russia urgently requires to modernize its economy. Some Chinese semiconductors manufacturers now may hope to fill the gaps in the Russian tech market. But it will not be so easy. Ning Wang shows that both Beijing and Moscow should think carefully about undermining Europe's high-tech sanctions this way.