Chery, Geely, Great Wall were quick to seize the opportunity and fill the void left by global automakers. So far they have managed to avoid the negative reaction of the collective West, which many companies from other countries trying to stay in Russia have been unable to do.
While Chinese automakers have so far avoided secondary sanctions, their growing presence in Russia could draw attention to their network of Western partners and risk “damaging their corporate reputation”. Still, some of China’s largest automakers are trying to make a name for themselves globally, including in Europe and the US, Bloomberg writes.
*This material was created by a person who has the status of a foreign agent in the Russian Federation.
However, Chinese President Xi Jinping supports Russian President Vladimir Putin, meaning that Chinese companies that continue to operate in Russia after the invasion will not face backlash or criticism domestically.
Meanwhile, ties in the global auto industry are very tight, and those who “leave” are more likely to suffer.
The Chinese Geely therefore controls Volvo and Polestar Automotive Holding. One of the major shareholders of Mercedes-Benz and Aston Martin is Chinese billionaire Li Shufu.
Based on all this, we can conclude that the Chinese auto industry is going its own way, and so far it is more profitable for it to maintain relations with Russia than to succumb to international pressure.
- “Driving” can now be viewed RuTube.
Source: Bloomberg