China’s private firms broke into the Russian market after a mass exodus of high-profile Western brands. Moreover, small Chinese manufacturers see a silver lining for their business in Russia. According to the South China Morning Post, "smaller businesses may be more likely to take the advice of China’s ambassador to Russia to fill the void in the Russian market". Bo Zhuang, senior analyst at investment firm Loomis Sayles & Company, believes that "Chinese companies in some sectors will especially benefit from the EU leaving Russian markets such as auto parts, food, medical supplies, and infrastructure components." "The trade between the two countries will most definitely increase in size in the next couple of years," he said. At the same time, Bo Zhuang noted that "Chinese state-owned enterprises will not risk violating sanctions by making inroads into Russian markets." Currently, China's banks with international business are reluctant to approve multi-currency account applications from Russians.
However, the smaller and privately owned companies are not wary of breaching Western sanctions. Besides, Chinese companies producing replicas of well-known brands are willing to fill the void in the supply of consumer goods. Moreover, their prices will surge amid the Chinese monopoly.
