China does not want its carmakers to risk their money in countries like Russia, so the Russian Federation hopes to establish domestic car production with the help of Chinese companies will most likely remain in vain.
According to Reuters, at a meeting held in early July, China's Ministry of Commerce warned car manufacturers about the risks associated with investing in Russia.
Chinese Ministry of Commerce officials "strongly do not recommend" investing in the construction of factories in Russia and Turkey, do not allow investment in India and describe more softly the risks of building factories in Europe and Thailand.
To reduce potential risks due to geopolitical concerns, the Celestial State authorities have recommended using overseas factories to assemble components supplied from China.
The Russian auto industry suffered a catastrophic collapse as a result of the war against Ukraine. Due to the shutdown of factories of foreign manufacturers who left Russia, production in 2022 fell three times to the lowest level since the collapse of the USSR.
For now, it is difficult to say how (the position of the Chinese government) will affect the projects already started or planned, but all of them are being done in already existing enterprises, in partnership with Russian companies, except for one.
We are talking about Great Wall Motor, which launched a Haval car manufacturing plant in the Tula region (Russia) in 2019. It is also an assembly factory, but with the highest degree of localization, plus it belongs to a Chinese company.
However, even before the recommendation of the authorities, Chinese car concerns did not seek to develop production in Russia, limiting themselves to assembling their models in the facilities that became vacant after the withdrawal of Western concerns.
As noted, China is already having trouble selling what it produces, as its market is growing more slowly than they thought, and there are also US and EU restrictions. Therefore, the note from the Chinese youth seems appropriate.