China ramps up machine tool exports to Russia's defense sector tenfold since 2022 – FT

Starting from February 2022, China has significantly increased the supply to Russia of advanced "computer numerical control" devices, necessary for precise metal milling and critical for the Russian military industry, writes the Financial Times.

In February 2022, China accounted for 12% of the Russian import of such machines ($6.5 million), but in July 2023 already for 57% ($68 million).

Russia also imports significant volumes of CNC (computer numerical control) units produced in Taiwan and South Korea.

Supplying the machines potentially puts Chinese companies at risk, but they are not deterred.

The FT writes that some suppliers, such as Wuhan Huazhong Numerical Control, are closely linked to the People's Liberation Army of China.

According to Alexander Gabuev, director of the Carnegie Russia Eurasia Center in Berlin, previous US sanctions and export restrictions on Chinese military contractors have led many Chinese companies to simply ignore the potential risks of US sanctions.

Such companies expect that sooner or later anyone associated with the People's Liberation Army of China will be subject to sanctions. They believe that you can either try to stay in the market, avoiding deepening military ties, and still be subject to sanctions, or simply continue working.

In November, the United States introduced new sanctions that should block the supply of Korean machine tools to Russia.

In September 2023, the National Agency on Corruption Prevention added two machine tool manufacturers from Germany – Spinner and DMG Mori – to the list of international war sponsors. After that, another Western manufacturer of machine tools – the NSH Corporation (Niles-Simmons-Hegenscheidt) – came to light as a supplier for the Russian defense industry.