Ukraine confirmed Chinese supplies to 20 Russian military plants, intelligence chief says
KYIV - Ukraine has confirmed information that China is supplying a range of important products to Russian military plants, the chief of Ukrainian foreign intelligence was quoted on Monday as saying.
"There is information that China supplies tooling machines, special chemical products, gunpowder, and components specifically to defence manufacturing industries," Oleh Ivashchenko told Ukrinform state news agency.
"We have confirmed data on 20 Russian factories," he said.
Reuters has requested a comment from the Chinese foreign ministry.
China, the world's second-largest economy, has forged even closer trade and other economic relations with Russia since Moscow sent tens of thousands of troops into Ukraine in February 2022, triggering Western sanctions on the Russian economy.
Ukrainian President Volodymyr Zelenskiy said last month that China was supplying weapons and gunpowder to Russia, the first time he had openly accused Beijing of direct military assistance for Moscow.
China dismissed the accusation as "groundless" but Kyiv imposed sanctions on three Chinese entities.
Ivashchenko said Ukrainian intelligence also had information on at least five cases of Russian-Chinese cooperation in the aviation sector in 2024-2025, including the supply of equipment, spare parts and documentation.
He added that there were six cases of "large shipments" of speciality chemicals, without providing details.
Reuters could not independently confirm the assertions. REUTERS
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Business Times
an hour ago
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Much of the rally's momentum has also been carried by artificial intelligence-led optimism, reminiscent of the artificial intelligence (AI)-boom in 2024 that led to the strong performance of the Magnificent Seven stocks. To some, China's technological potential is no longer perceived as merely capitalising on 'one to n' capabilities – i.e. reproducing existing innovations at scale – but has showcased its capabilities to create 'zero to one' innovation from the ground up. 'DeepSeek's advancements underscore the immense potential of China's AI ecosystem,' said Terence Lim, equities portfolio manager at Eastspring Investments Singapore in a report. 'Many companies are not only innovating rapidly but also trading at much more attractive valuations compared to their US counterparts.' Morgan Stanley upgraded its outlook on China to overweight, based on earnings beat for MSCI China companies after four straight years of quarterly misses. While the fallout from Trump's latest tariffs is likely to quell global growth significantly, strong corporate earnings may mean that the 'Terrific Ten' remain resilient in the coming months. We bucket the Ten into three categories – internet giants, e-commerce and consumer goods, and electric vehicles – and discuss upcoming trends to watch. Internet giants: Tencent, NetEase, Baidu, SMIC China's internet tech companies have moved quickly to capitalise on the 'DeepSeek effect'. Tencent, for instance, has incorporated DeepSeek's R1 model into its 'AI Search' functions within Weixin, as well as rolling out an upgraded iteration of its proprietary Hunyuan T1 model. BT in your inbox Start and end each day with the latest news stories and analyses delivered straight to your inbox. Sign Up Sign Up The digital ecosystem giant, which operates WeChat and its mainland equivalent Weixin, has seen its share price surge 24 per cent since the beginning of the year. Also in this bucket is China's largest semiconductor foundry SMIC, which has surged nearly 40 per cent year-to-date, driven by the AI hype and a government push for self-sufficiency in chip production. However, potential chip tariffs from the US may slow its runaway share price. Others include gaming operator NetEase, and the search engine provider Baidu, both of whom have yet to truly achieve lasting growth through AI adoption. While each has expanded into adjacent areas – music streaming in NetEase's case, and autonomous driving for Baidu – neither has managed to step out from the shadow of dominant rivals like Tencent and Alibaba. Yet, relatively cheap earnings multiples compared to China's other tech giants may support their bull cases. E-commerce and consumer goods: Alibaba, JD, Meituan, Xiaomi Standing tallest among the AI-driven resurgence of Chinese stocks is Alibaba, the e-commerce giant founded by Jack Ma. In addition to its main e-commerce platforms Taobao and Tmall, Alibaba has emerged as a leader in the cloud computing space. Its Nasdaq-listed shares have soared on the company's commitments to boost AI spending and the unveiling of its open-source AI model Qwen 2.5 in early March. Analysts also see the company as having quietly buried the hatchet with Beijing after regulatory crackdowns since 2020, aligning with broader state efforts to stimulate domestic consumption. Meituan, however, has analysts feeling mixed. The food delivery giant has seen strong fundamental growth in the past year, with total revenue growing 22 per cent to 338 billion yuan (S$60.3 billion). Yet the stock has lost around 4 per cent year-to-date, underperforming the 24 per cent rise in the Hang Seng Tech Index over the same period. Still, planned expansions of its overseas meal delivery service Keeta in the Middle East and Hong Kong, as well as plans to integrate AI into its work processes, could see the Hong Kong-listed stock rebound. Xiaomi, meanwhile, has drawn attention with a 90 per cent earnings growth in Q4 2024, its fastest since 2021. The smartphone maker has been actively repositioning itself as a broader Internet of Things ecosystem player, with growing bets on smart devices and AI integration. But it is the company's aggressive push into electric vehicles (EVs) that has sparked the most interest. Electric Vehicles: BYD, Geely, Xiaomi China's EV crown remains with BYD, the Warren Buffett-backed automaker that is quickly emerging as a global competitor to market leader Tesla. The company sold over four million new energy vehicles in 2024, overtaking Tesla in global EV sales revenue. BYD has ramped up AI-assisted driving features and continues to expand overseas into Europe, Southeast Asia and South America. Trailing BYD's market dominance is a crowded pool of automakers competing for second place, including Geely and the aforementioned Xiaomi. Geely sold a respectable 2.18 million vehicles in 2024, pushing sales revenue up 34 per cent from the previous year and beating profit estimates. Meanwhile, Xiaomi's US$5.5 billion fundraising in March for EV investments has cemented its commitment to take on BYD and Tesla in the EV game. The company plans to open its second EV factory in Beijing in mid-2025, raising its sales target to 350,000 vehicles in 2025. Caution beneath the hype However, continued strong performance of Chinese tech stocks is not a given. While the 'Terrific Ten' may reflect genuine innovation and recovery – especially in AI, EVs, and digital platforms – confidence in a sustained turnaround hinges on policy clarity and macro stability. Morgan Stanley chief China economist Robin Xing said that recent memories of regulatory crackdowns, structural deleveraging and deflationary pressures have left a deep imprint on investors, while recent tariffs may cause further downside for Chinese equities. The tariffs may prompt Beijing to accelerate its planned RMB 2 trillion yuan stimulus package sooner than expected. 'That said, this may only partly offset the tariff shock,' Xing noted.
