China and Russia's Evolving Economic and Political Relationship.

Chinese companies are adjusting to international sanctions on Russia by taking advantage of reduced competition in unsanctioned sectors, increasing their presence in the Russian market, and complying with international sanctions. Chinese brands are dominating the Russian car market, household appliances, and smartphone sales. However, some Chinese companies are limiting their exposure to Russia due to reputational concerns. Sanctions risks have also deterred Chinese investors in Russia, including state-owned enterprises. Chinese exports to Russia grew by 67.2% in Q1 2023, with private consumer-oriented companies and regional producers taking the lead in economic engagement with Moscow.