It’s Complecated…
While Huawei (pvt) and ZTE (000063.CH) have already been sanctioned by the US government over alleged collusion with the Chinese government, there are a number of Chinese smartphone and telecom companies that have not, some of whom sell products in the US and Europe, but there is the possibility that new sanctions might be imposed on some Chinese brands as they sell products into Russia during the Ukraine invasion. The Chinese government has taken the stance that it does not believe that sanctions against Russia have any basis in international law and will create more problems than they solve, leaving Chinese smartphone producers to continue to sll product in Russia.
Russia’s largest mobile operator MTS () has indicated that sales of Huawei smartphones jumped 300% during the first two weeks of March, along with triple digit growth from Chinese brands Oppo (pvt) and Vivo (pvt). While these brands are hard to find in the US, Oppo and Vivo are both typically found among the top 5 brands globally, so the possibility of US sanctions, which would preclude any company (globally) from producing or selling same if they are produced with any US equipment or software (hard to imagine that is not the case). If the US were to sanction these companies for selling in Russia, it could create a very difficult business situation among US supporters in Europe and Asia. That said we have seen a number of companies in the US that have indirect ties to Russia be criticized and social media will continue to press those connections. While sanctions against Russia make us feel that we are doing something for the people of Ukraine, they have implications that wind even more deeply through the US economy and the US political system. It’s complicated…
Russia’s largest mobile operator MTS () has indicated that sales of Huawei smartphones jumped 300% during the first two weeks of March, along with triple digit growth from Chinese brands Oppo (pvt) and Vivo (pvt). While these brands are hard to find in the US, Oppo and Vivo are both typically found among the top 5 brands globally, so the possibility of US sanctions, which would preclude any company (globally) from producing or selling same if they are produced with any US equipment or software (hard to imagine that is not the case). If the US were to sanction these companies for selling in Russia, it could create a very difficult business situation among US supporters in Europe and Asia. That said we have seen a number of companies in the US that have indirect ties to Russia be criticized and social media will continue to press those connections. While sanctions against Russia make us feel that we are doing something for the people of Ukraine, they have implications that wind even more deeply through the US economy and the US political system. It’s complicated…
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