So, here's the deal: Reuters put out some news on July 22, 2024, that the shady business of smuggling semiconductors and stuff that can be used for both civilian and military purposes from China and Hong Kong to Russia has really dropped off this year. The U.S. Commerce Department crunched some numbers and found that these shipments have gone down by a solid 20%. That's pretty big, considering China and Hong Kong are like the main middlemen for sending these goods to Russia.
What's Going On with China and the International Community
China's playing it cool in the whole Russia-Ukraine drama, but it's definitely getting cozier with Moscow on the economic front. And because of that, it's basically the go-to place for Russia to get all these important gizmos that are super useful for defense tech. This isn't sitting well with some big players like the U.S. and the U.K., who think China's giving a helping hand to Russia's military in Ukraine.
The Goods and How They're Moving
The stuff that's really got everyone worried—let's call it "high-priority gear" because it's fancy and could totally end up in weapons—has had its shipments drop big time. If you look at the first five months of 2024, these items moving through Hong Kong took a nosedive of 28%. And if you don't count Hong Kong, shipments from mainland China still went down by almost 20%.
Someone who works for the U.S. Commerce Department but didn't want to be named (probably because they don't want to stir up trouble) said that while it's nice to see these sneaky shipments drop, they're still keeping a really close eye on China. Basically, they're like, "Okay, good job on the slow down, but you're still our main worry."
The Bottom Line
This whole situation with chips and other goodies not making it to Russia as much is a pretty big deal in the grand scheme of things, especially with all the tension flying around the globe. It's a good step, but everyone's still watching China like a hawk because of its part in all this.