Chinese companies push Russian producers out of key markets, Ukrainian intelligence reports
Chinese companies are pushing Russian manufacturers out of key markets (photo: Getty Images)
Russia's economy is facing growing pressure from "friendly" countries that are rapidly filling niches left vacant by the investment freeze, the press service of Ukraine's Foreign Intelligence Service reports.
According to the Foreign Intelligence Service of Ukraine, the high key interest rate, ineffective monetary policy, and reduced budget stimulus are effectively paralyzing domestic Russian producers.
Official indicators of fixed capital investment appear stable, but they reflect only old assets, while the real decline is 1.5%.
It is noted that export revenues have already fallen by 20%, and the growing tax burden, including VAT, further limits business capabilities.
Industrial producers directly cite the slow reduction in the key rate and the high cost of loans as the main barriers to development. As a result, the market is opening up to Chinese suppliers of equipment and products, who are gaining control over segments that Russian companies are losing — without making significant investments.
The most telling example is the heavy truck market. From January to October 2025, sales of vehicles over 14 tons dropped by 54%, while long-haul tractor sales fell by 71%.
Overall, only 37.9 thousand heavy vehicles were registered — 57% fewer than last year.
Despite KamAZ's formal leadership with a 29.5% share, Chinese manufacturers such as Sitrak (16.3%), Shacman (10.8%), and FAW (9%) are effectively pushing it out of the market. Additional pressure also comes from Belarusian MAZ with a 7.2% share.
"The Russian manufacturer is doomed to further displacement from key segments, and regaining lost positions amid the aggressive expansion of 'friendly' competitors is effectively impossible," the intelligence service noted.
Cooperation between Russia and China
Recently, Chinese Premier Li Qiang announced that China is ready to deepen cooperation with Russia across investment, energy, agriculture, and other areas.
In addition, earlier, The Economist reported that China has become the leading supplier for Russia's war machine. It is assumed that Beijing may have transferred lethal weapons to Moscow.
In April, Ukrainian President Volodymyr Zelenskyy stated that Ukraine has evidence of China supplying weapons to Russia. Beijing denies these supplies.
According to the spokesperson for the Foreign Intelligence Service of Ukraine, Russia also plans to produce 2 million FPV drones this year using Chinese components for the war against Ukraine.
