The last time Russia was hit by Western sanctions, President Putin turned to the Chinese company to rebuild and upgrade the territory's communication infrastructure. Despite the threat of more sanctions by the US, the Chinese technology company is positioned to aid the Putin regime on a much larger scale.
The European Centre for International Political Economy's Hosuk Lee-Makiyama said that Russia took out Western telecom gear in the heavily militarized territory and replaced it with Chinese companies. Moscow would need Chinese companies more than ever if they were to exit Russia, he said.
Despite a plunge in phone shipments, the company has been a winner from the war. In the first two weeks of March, its phone sales in Russia rose 300 percent, while other Chinese brands recorded triple-digit sales increases, according to analysts at the largest mobile operator in Russia.
AdvertisementDozens of engineers, including machine-learning scientists in Novosibirsk, are being recruited by its four Russian research centers. Since the invasion of Ukraine, there have been new sales and business development openings in Moscow.
Chinese tech companies such asHuawei andXiaomi are at risk of violating sanctions if they ship phones and telecoms gear to Russia. They need Washington's approval because the electronics often contain high-end semiconductors or are made with US tools, making them subject to new sanctions on Moscow.
It would be a big blow to the Chinese company's operations if the US hit them with more sanctions.
Kevin Wolf is a former commerce department official and sanctions expert.
It is possible that they have been able to figure out how to make a cell or base station without US tools.
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