2023-02-06 14:29 Last Update: 14:33
According to a recent report on the “Russian Business Consulting Daily” website, a recent survey by the Gaidar Institute for Economic Policy shows that Russian companies now use mainly Chinese and local products to replace equipment and spare parts originally imported from “unfriendly countries “. Especially in the equipment market, almost 70% of Russian companies chose Chinese suppliers last year. Some Russian experts predict that the market share of “Made in China” in the Russian industry will be even higher in the future.
Last year, almost 70% of Russian companies chose Chinese suppliers to replace Western equipment.
According to the report, the research laboratory of the Economic Policy Institute Gaidar issued a questionnaire to about 1,000 Russian companies in January this year to investigate the replacement of imported goods subject to secondary sanctions in equipment, spare parts and accessories. The results show that the share of Chinese suppliers in the first two substitute products exceeds that of Russian local suppliers, becoming the “most popular new channel”, while Russian products have only a small advantage in accessories.
In particular, 67% of Russian companies chose China as the country to replace Western equipment, accounting for the highest share, followed by 39% of Russian companies. Another 21% chose EEU partners other than Russia (Armenia, Belarus, Kazakhstan, Kyrgyzstan), 17% chose Turkey, and 12% chose India, Iran, Vietnam, Egypt and North Korea. In addition, 23% of Russian companies chose “third countries” other than the listed countries, and 15% continued to receive approved equipment.
In the spare parts market, Chinese producers are also leading, with 63% of Russian companies seeking their supplies. 46% choose local Russian products, and the gap is slightly smaller than the gap in the field of equipment replacement. 24% of the companies surveyed switched to spare parts from other countries, and 22% chose to continue receiving sanctioned products.
In terms of accessories (including raw materials and semi-finished products), enterprises that choose Russian local products are in first place with a share of 54%. Chinese products were second by a small margin, accounting for 52%. 23% of Russian companies continue to receive approved parts. The head of the investigative laboratory, Sergey Tsukhlo, said that the Russian company has shown “the highest independence” from secondary penalized products in terms of accessories. Previously, 20% of Russian companies had never used accessories imported abroad, while in terms of equipment and spare parts, this proportion was only 11%.
Russian car assembly workshop.
According to reports, Vladimir Salnikov (Vladimir Salnikov), deputy general director of the Russian Center for Macroeconomic Analysis and Short-Term Forecasts (CMACP), believes that although similar products in Russia are not the main replacement channel for equipment has ‘to import and spare parts, but it can be argued that the findings are still positive. “These surveys show that import substitution works,” he said.
Salnikov said that the share of indigenous equipment in Russian industry has always been very small. Taking the field of machinery and equipment production as an example, from 2021, five-sixths of the equipment of Russian enterprises will be imported from abroad, and domestic equipment will account for only one-sixth.
According to him, the market share of Chinese and Russian local products in the above data may still be on the high side, because it is often difficult to determine the true country of origin of equipment or components in such surveys. Chief accountants in companies often fill out these types of questionnaires, but they don’t always know exactly whose equipment they are buying, he explained.
“The chief accountant can see who the money went to, but it may have been a Russian distributor of spare parts made in China. I believe this factor could have affected the outcome of the investigation. ” Salnikov also expects that the future products of Chinese suppliers accounted for or more in the Russian industry.
It is reported that China’s exports to Russia will increase by 12.8% in 2022, reaching US $76.1 billion. Last year, China increased its supplies of Russian trucks, excavators and loaders, rubber tires, pumps and compressors, cranes, gate valves, valves and gas valves.
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