Illegal shipments of chips and other banned products through China and Hong Kong to Russia decreased fivefold between January and May 2024. At the same time, Hong Kong remains the main center for circumventing sanctions. This was reported by Reuters.
According to previously non-public information from the U.S. Department of Commerce, the transportation of conventional high-value goods (CHPL) to Russia through Hong Kong, which includes chips used to build weapons, fell by 28%. In the same period, transportation through China decreased by 19%.
The Department of Commerce, answering a question about the transportation of dual-use goods to Russia, noted that it was taking measures to "limit Russia's access to technology and other items necessary to continue its brutal war against Ukraine."
"I think there's some cause for being at least optimistic that we have been able to slow down some of this trade. China is still our number one concern," said a representative of the US government.
One official speaking to Reuters said that the slowdown in illegal shipments was the result of several key factors, including aggressive enforcement by U.S. authorities and engagement with companies whose products were being diverted across the border.
The data presented in the forthcoming report of the Committee for Hong Kong's Freedom (CFHK) Foundation indicates that between August and December 2023, $750 million worth of prohibited goods were shipped through Hong Kong.
Among them were high-end chips from NVIDIA and French Vectrawave, and cheap chips from Texas Instruments and Intel. Some of these banned goods were sent to sanctioned Russian firms.