Chinese smartphone manufacturer Transsion Holdings, statement on Russian money operations2022-03-14         Follow @huaweinewos Tweet to @huaweinewos
A Shenzhen-based smartphone maker said it relied on yuan payments to maintain its operations in Russia, and is the first Chinese tech firm to explain how it has maintained business continuity there after Western countries slammed tough financial sanctions on Moscow after the invasion of Ukraine.
Transsion Holdings, a budget smartphone maker, said in a message to investors that when asked about the impact of the sanctions on Russia, they started trading the Chinese yuan to manage potential risks. He did not elaborate.
The company said that the Russian market makes up only a small part of the total revenue and that Moscow’s military operation in Ukraine will not significantly affect its operations.
However, confirmation that the company is using yuan payments shows a path Chinese businesses can follow to stay active in Russia after heavy sanctions imposed by many countries, including exclusion from the Swift bank messaging system.
While international brands from Apple to Samsung Electronics made high-profile announcements to leave Russia, Chinese companies have generally remained silent about their business plans in the 144 million market.
While the Chinese government condemned the sanctions imposed on Russia, it called for the crisis to be resolved through diplomatic means. It enabled public banks to take measures to manage their own risks.
It established a Russian subsidiary in December 2017 with a registered capital of 6 million rubles, according to the prospectus of Transsion Holdings, Africa’s largest mobile phone supplier thanks to its popular, affordable phones. The company released a series of “gaming” smartphone models in Russia last year.
News Read more: scmp.com