April 15, 2022

Huawei Slinks Out


Huawei Slinks Out
Huawei's headquarters building, Shenzhen, China. Brücke-Osteuropa, Wikimedia Commons

In the midst of heavy sanctions and economic turmoil as a result of Putin's invasion of Ukraine, Russia is now facing the loss of another major company: Chinese telecoms company Huawei.

The company announced this week that it will be canceling all outstanding orders and furloughing all its staff in Russia. Huawei reportedly accounts for some 33% of networking products and equipment in Russia.

This move comes after China was threatened with punishment from the West for its aid to Russia during this period. While sanctions from the US and EU have cut off supplies of everyday goods from car parts to dental chemicals to jet fuel, and Western franchises such as KFC and McDonald's have left Russia for the time being, China was seen as an autocrat-friendly alternative where Russians could source what they'd lost (albeit of lesser quality).

Now, with the loss of Huawei, perhaps one of Russia's last close trade partners is rethinking its priorities, further isolating Russia on the global stage.

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