China Is Quietly Taking Over Russia's Tech Market
Micah McCartney | Jan 28, 2025 at 12:47 PM EST | Updated at 9:42 PM ESTChinese IT firms are expanding in Russia, filling the gap left by Western exits after the invasion of Ukraine.
While Chinese companies are taking advantage of the ever-stronger economic ties between the two countries, concerns are being raised about Russia's level of dependence on its neighbor at a time when it is being choked by sanctions and IT firms are laying off staff.
Last year saw an 18 percent rise in the number of Chinese and Russian IT companies seeking help to penetrate "friendly markets" from the Russian-Asian Union of Industrialists and Entrepreneurs, which fosters economic cooperation between Moscow and its Asian partners, Russian newspaper Kommersant reported. Chinese companies have reportedly approached the organization twice as often.
Chinese developers see a less competitive market brimming with opportunities, with Chinese applications now accounting for more than half of purchases on Russian app platform RuStore. Three-quarters of these are games, per the report.
The departure of Western tech companies such as Microsoft and Adobe in response to Vladimir Putin's unprovoked war against Ukraine, and Moscow's move to reverse its ban on cryptocurrency payments, the legalization of crypto mining, and the introduction of the digital ruble in 2023 have opened the door wide to Chinese tech industries. . .
https://www.newsweek.com/china-news-russia-tech-market-take-over-sanctions-bite-2021826