Chinese Competition Is Killing off the russian Plant Where Dmitri Mendeleev Worked

russia is rapidly losing its own market, ceding key positions to Chinese companies – from logistics and automotive industry to light and chemical industries. After the start of the full-scale war against Ukraine and introduction of sanctions, russia’s market has become increasingly dependent on Chinese companies, which are filling the vacated niches, dictating prices, and displacing local manufacturers. The result of this trend is losses, production cuts, and the loss of strategic autonomy.

The situation in the chemical industry is particularly telling. One of the oldest enterprises in the rf, the karpov chemical plant in mendeleevsk, is on the verge of survival. Founded in 1868 and once home to Dmitri Mendeleev himself, the plant is now experiencing a major crisis. While in 2021, almost 400 people worked there, by the beginning of 2026, only about a hundred remained. The main production lines have been shut down due to unprofitability, and some of the employees have been sent on indefinite leave.

Financial indicators show a sharp decline. The company ended 2024 with a loss of 10 million rubles, and 2025 – with a loss of about 100 million. Production volumes have fallen by 40%. Management openly admits that the plant cannot compete with Chinese manufacturers, who offer similar products at 20% lower prices. After 2022, when russia came under sanctions pressure due to the war, imports from China began to displace local products even on the domestic market.

Against this background, the plant is trying to save itself with a new “electrolysis” project worth 3 billion rubles. It plans to launch the production of chlorine, caustic soda, and sodium hypochlorite. Paradoxically, the equipment for the new workshop is being supplied by a Chinese company, which means that even the attempt to reduce dependence on imports is actually deepening it. The project’s payback period is estimated at almost nine years, which is overly optimistic given the economic instability.

Due to the war against Ukraine, russia has lost access to technology and investment and finds itself in an increasingly deep economic dependence on China. As a result, the rf, which for decades has positioned itself as an industrial power, is increasingly losing production, jobs, and financial resources as it tries to patch up the consequences of its own aggressive policies.