Ukraine: Beijing’s aid to Russia threatens Chinese tech giants
Fears of US reprisals in case of Chinese aid to Moscow has sparked a sell-off of shares in Chinese hi-tech companies. The US National Security advisor issues a warning. For Yang Jiechi, “the situation in Ukraine has reached a point that the Chinese side does not want to see.” The Chinese are in "damage control" mode.
Beijing (AsiaNews) – Russia’s invasion of Ukraine is weighing heavily on the fortunes of Chinese hi-tech companies, whose shares are undergoing a massive sell-off resulting from fears that Western sanctions against Russia might be extended to countries helping the Kremlin.
Yesterday, in a meeting in Rome with Yang Jiechi, a member of the Politburo and director of the Central Foreign Affairs Commission General Office, US National Security Advisor Jake Sullivan warned that there will be “significant consequences” for China if it helps Russia militarily or otherwise.
Moscow and Beijing have rejected US claims that the Kremlin asked the Chinese government for military and financial support, with the latter expressing its availability.
In addition to the geopolitical risks associated with the conflict in Ukraine, the anti-monopolistic crackdown by Chinese authorities has squeezed the prices of Chinese hi-tech “unicorns”, billion-worth start-ups, with a loss in market capitalisation of around US$ 990 billion.
Added to the picture is the latest COVID-19 outbreak in China and the ongoing risks of “delisting” of Chinese companies from Wall Street.
As the South China Morning Post points out, China’s 30 top technology companies have lost approximately US$ 460 billion in market value since the start of the year, including Alibaba, Tencent, JD.com and Meituan, which the US bank JPMorgan Chase calls “uninvestable”.
Any support, even indirect, to Russia's armed action against Ukraine risks costing China dearly. Nevertheless, at least in verbal rhetoric, the Chinese government has backed Russia in blaming NATO for the armed escalation in Eastern Europe.
However, Beijing is in a quandary, caught between trying to protect its “tactical” partnership with the Kremlin and upholding the principle of non-interference in the internal affairs of a sovereign state like Ukraine.
Concerns over the state of its economy should encourage Beijing to be more cautious in its relations with Moscow.
In fact, Yang told Sullivan that "the situation in Ukraine has reached a point that the Chinese side does not want to see.” Instead, “China is committed to promoting peace talks” between the parties to “achieve substantive results as soon as possible”.
Meanwhile, Chinese Foreign Minister Wang Yi yesterday told his Spanish counterpart José Manuel Albares that China will follow its own path to promote peace talks between Russians and Ukrainians.
During the phone conversation, Wang explained that China is not involved in the crisis and does not want to be hit by sanctions.
Despite the Biden administration's complaints of possible Sino-Russian collusion, the US Treasury Department said that nothing suggests that Beijing is helping Moscow circumvent sanctions.
For their part, the Chinese say they want to play a “constructive role” in the Ukrainian crisis, but right now they seem more in “damage control” mode.
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11/08/2017 20:05
