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Case Study: Millions of Dollars’ Worth of Tier One Common High Priority Items Exported from China to Russia
This case study is an assessment of roughly one month of trade data scrutinizing Chinese exports to Russia of Tier 1 goods valued at roughly $40 millions of dollars. Tier 1 goods are the most important items Russia needs to manufacture and build the precision-guided weapon systems critical to waging war in Ukraine. They are further characterized by the lack of Russia’s domestic production of them and limited global manufacturers, requiring Russia to import them. This case study adds to the growing body of work that China not only has emerged as a critical source of Tier 1 items, cementing its role as a key backer of Russia’s military industrial complex, but it does not take any meaningful steps to block these transfers.
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NEW CASE STUDY: Millions of Dollars’ Worth of Tier One Common High Priority Items Exported from China to Russia
This case study is an assessment of roughly one month of trade data scrutinizing Chinese exports to Russia of Tier 1 goods valued at roughly $40 millions of dollars. This adds to the growing body of work that China not only has emerged as a critical source of Tier 1 items, cementing its role as a key backer of Russia’s military industrial complex, but it does not take any meaningful steps to block these transfers.
The study identified hundreds of Russian companies importing Tier 1 items, which are not made in Russia, from Chinese companies containing a mix of illegal Western products and Chinese-manufactured products. The trade data in this case study supports that Chinese companies are providing their own domestically produced Tier 1 goods to Russia, giving Russia a substitute for Western goods.
This report examined 5243 trade records, almost all during January 2024, accounting for nearly $40 million worth of Tier 1 items being exported by Chinese companies to Russia and found that Russia received from China over $14.4 million worth of Tier 1 items produced by non-Western manufacturers. Many of those Tier 1 goods were produced by Chinese companies.
This case study highlights 15 Chinese manufacturers producing and supplying Tier 1 goods to Russian companies, some of which are connected to the Russian military industrial complex. Six of those companies have been sanctioned by the United States, but the remainder are non-sanctioned entities, despite their supply potential and the Tier 1 items that were shipped to Russia, according to the trade data.
Furthermore, an analysis of the trade data shows that 33 of the Russian importers had been sanctioned by the United States as of the writing of this report, representing a total cargo value shipped from China of $12.6 million worth of Tier 1 items produced by both Western and non-Western manufacturers. Of those sanctioned Russian importers, thirteen were sanctioned before the period of the trade data; 12 were sanctioned during the period of the trade data; and eight were sanctioned after the period of the trade data.
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