Hong Kong/Washington, July 21 (Reuters) – The flow of restricted semiconductors and
other goods from China and Hong Kong to Russia has slowed, but Hong Kong remains a
major global hub for sanctions evasion, according to previously undisclosed US
Commerce Department data.
Transshipments of advanced components, including microelectronics, deemed likely to be
used for Russia’s war in Ukraine, fell 28% between January and May 2024 through Hong
Kong, and 19% through mainland China.
While the US government has expressed optimism about slowing down the illicit trade,
China remains a major concern. The US has accused China of supporting Russia’s war
efforts by exporting parts and equipment needed by Moscow’s weapons makers.
The US Commerce Department has been working to restrict Russia’s access to advanced
technologies and materials, and has imposed sanctions on entities with alleged
commercial links to Russia’s military, including shell companies in Hong Kong.
The Hong Kong government has stated that it does not implement unilateral sanctions
imposed by other countries.
The development highlights the ongoing efforts of the US government to curb the flow of
restricted goods to Russia, and the ongoing role of China and Hong Kong as key
transshipment hubs.