russian Business Is Stepping Back: Chinese Companies Are Effortlessly Capturing Key Markets

russia’s economy is facing increasing pressure from so-called “friendly” countries, which are quickly filling the niches left vacant by the investment pause. High key rates, ineffective monetary policy, and reduced budgetary stimulus are effectively paralyzing domestic producers. Formal indicators of investment in fixed capital appear stable, but this is only a reflection of old assets, while the real decline has reached 1.5 %.

Export revenues have already declined by 20 %, while the increase in the tax burden, including VAT, further limits opportunities of businesses. Industrialists directly point to the slowdown in key rate cuts 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, without significant investment, are gaining control over segments that russian companies are losing.

The heavy truck market is the most indicative. In January–October 2025, sales of vehicles weighing over 14 tons declined by 54 %, and the long-haul tractor segment – by 71 %. In total, only 37,900 heavy vehicles were registered, which is by 57 % fewer than last year. Despite KAMAZ’s formal leadership with a 29.5 % share, Chinese manufacturers Sitrak (16.3 %), Shacman (10.8 %), and FAW (9 %) are effectively pushing it out of the market. belarusian manufacturer MAZ, with a 7.2 % share, is also adding pressure.

The russian manufacturer is doomed to further displacement from key segments, and it is virtually impossible to regain lost positions in the face of “friendly” competitors’ aggressive expansion.