Ever since the Russia-Ukraine war started, the world has not seen a single normal day. This is because every day someone is affected either directly or indirectly, be it big MNCs or some remote nation. Chinese tech companies are examples of this case as China issued strict sanctions on its tech giants in Russia. Here are the latest updates regarding this tech crackdown.
EXCLUSIVE: China’s big tech crackdown isn’t over. Officials are considering a shakeup of Tencent similar to Jack Ma’s Ant https://t.co/fFpIPAqF3w
— Bloomberg (@business) March 18, 2022
Chinese Tech Crackdown
Due to the Russian aggression on Ukraine, many countries have turned against Russia and have extended their support to the 4.4 crore populated European nation. The USA and the European Union are mainly stressing China to issue a crackdown on its tech companies in Russia. Particularly, the USA prevents the export of its materials used by other companies to Russia.
So, the Chinese tech companies that use American raw materials or components, cannot export their finished products to Russia due to the pressure from the USA. But, Russia is a close ally of China and because of this the world’s most populated country is now in two minds about whether to go with the western sanctions or to continue supporting its neighbour.
Impact of this move
Now China has to make a decision. If it decides to comply with the western orders, its relationship with Russia will be affected and the country would face intense domestic backlash. But, if China chooses to ignore the pressure from the USA, it would be portrayed as an enemy to the world. Luckily China prevented the enmity against the world by cracking down on its tech companies in Russia.
However, this move made some of the top tech companies in China unhappy. This is because China is one of the principal electronics suppliers to Russia. Companies like Xiaomi and Huawei are the first to express their disappointment when China imposed this crackdown. These companies would lose their market in Russia and they can only hope that the war comes to an end sooner than later as it is the only way to regain their market in Russia.
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