On March 12, the Russian newspaper The View (Взгляд) listed 10 areas in which Chinese companies have benefited from the ongoing Russia-Ukraine War and the sanctions from the U.S. and European countries.
First, the Union Pay system will be a winner. After Mastercard and Visa rejected overseas payment transactions, seven major Russian banks have indicated they plan to connect to China’s Union Pay system.
Second, the Chinese banking system will benefit. The West’s refusal to issue loans to Russian banks and invest in Russian assets creates opportunities for Chinese banks.
Third, it is good for the Chinese Yuan. Cutting off the access to the Dollar and the Euro will create a shortage of Western currency for Russian banks. Russian banks, companies, portfolio investors and ordinary people will turn their attention to the Chinese yuan.
Fourth, the Russian-Chinese trade will continue to climb to historic records.
Fifth, more Chinese consumer goods will enter the Russian market. Chinese clothing and daily products will become realistic substitutes for imported goods due to the shortage of dollars and euros.
Sixth, Chinese automakers will be in a favorable position.
Seventh, China will have access to all Russian energy and other raw materials that Europe rejected.
Eighth, Chinese investors will actively invest in Russian companies under favorable conditions, as competitors are exiting the Russian market.
Ninth, China’s role as a bypass route for Russia will increase. China could become a ‘middleman’ through which Russia could ship needed Western parts while paying to third parties.
Tenth, Chinese airlines will be in an advantageous position. After Russia bans European airlines from flying over its airspace, passengers will fly with Asian airlines, including Chinese airlines.
Source: HK01.com, March 14, 2022