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Shipments of microelectronics from China, Hong Kong to Russia drop 28% in 2024
The US Department of Commerce reports a 28% drop in banned goods shipments to Russia from China and Hong Kong in the first half of 2024
Reuters reported the information.
The decline is seen in high-tech components, including microelectronics, and other goods potentially usable by Russia in the war against Ukraine.
Between January and May, Common High Priority Items (CHPL) transit through Hong Kong fell by 28%, while mainland China saw a 19% drop.
The US views Hong Kong and China as crucial supply hubs for the Russian military. However, collaborative efforts by law enforcement and product suppliers have significantly curbed illegal shipments.
"I think there's some cause for being at least optimistic that we have been able to slow down some of this trade," the official said, but added, "China is still our number one concern."
Nonetheless, research by C4ADS, a global security think tank, showed over 200 Hong Kong firms sent nearly $2 billion in goods to Russia from August to December 2023.
The data, featured in an upcoming Committee for Freedom in Hong Kong Foundation (CFHK) report and analyzed by Reuters, reveals that goods worth $750 million, including high-tech chips from Nvidia and France's Vectrawave, and lower-end chips from Texas Instruments and Intel, were shipped through Hong Kong in that period.
"Our research has highlighted numerous instances where Hong Kong-based companies have facilitated the transfer of sensitive technologies and commodities, undermining international security and stability," said Samuel Bickett, a lawyer and author of the CFHK report.
The mentioned electronics manufacturers state they have ceased shipping products to Russia and mandate compliance with US laws.
- On May 13, US Secretary of Commerce Gina Raimondo told Congress that Russia is using commercial chips in weapons production due to effective US export restrictions, which are slowing the Kremlin's war machine.
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