China is quietly expanding its business presence in Russian-occupied regions of eastern Ukraine. Chinese companies are supplying equipment, rebuilding factories, and even setting up joint ventures in areas like Donetsk and Luhansk. These regions, which have been under Russian control since the war started, are now becoming economic hubs for Chinese firms looking for new opportunities.
Early Business Engagements
This activity began in 2023 when business representatives from occupied Ukraine attended trade fairs in China. There, they met with Chinese manufacturers of heavy machinery, mining equipment, and construction materials. Shortly after these meetings, Chinese companies began shipping industrial equipment to the region.
One of the first major deals was between a Chinese company, Liming Heavy Industry, and a Russian-controlled mining firm in Donetsk. Liming supplied crushing and milling machines to help launch an ore-processing plant. Other companies, like Amma Construction Machinery and Zhongxin Heavy Industrial Machinery, also signed agreements to supply rock-crushing and sorting equipment.
Meanwhile, the coal industry in occupied Donetsk has also attracted Chinese businesses. A company called Sany Heavy Industry sent tunnel-boring machines to a Russian-backed firm in the region. These deals indicate that Chinese businesses are not just trading with Russian-occupied territories—they are helping to rebuild and expand their industries.
China’s Growing Role in Construction and Trade
China’s involvement goes beyond supplying equipment. Chinese companies and business representatives have traveled to these war-torn regions, meeting with Russian officials to discuss future projects. At an event in Moscow in 2023, Chinese experts presented large-scale urban development plans for these areas.
In 2024, a major Russian-Chinese construction forum took place in China’s Heilongjiang Province. Russian-backed officials from occupied Donetsk attended, trying to attract Chinese investment in metallurgy and infrastructure. One company, Wisdri Engineering & Research Incorporation, was invited to take part in the revival of Donetsk’s metal industry.
Russia is also working on a major transport route that would connect the occupied regions of Ukraine with China’s Belt and Road Initiative. This highway, stretching from Rostov-on-Don through Mariupol and Crimea, is designed to facilitate trade and investment in occupied areas. In 2023, a group of Chinese business representatives visited the occupied parts of Kherson Oblast to explore potential investments in local ports and agriculture.
Trade Boom: China’s Share in Occupied Ukraine’s Economy
By 2023, trade between China and the Russian-occupied territories had significantly increased. More than half of the exports from occupied Donetsk went to China, Turkey, Syria, Belarus, and Kazakhstan. China alone accounted for nearly 60% of all imports into occupied Luhansk. These imports included electrical equipment, machinery, food products, and chemicals.
Strengthening Economic Ties with Russia
The deepening ties between China and Russian-controlled areas have raised questions about Beijing’s growing role in the conflict. Chinese companies continue to work closely with Russian-backed administrations, despite international sanctions and Ukraine’s warnings. Russia, struggling to rebuild the war-torn regions on its own, is eager to bring in Chinese investments.
With factories reopening and construction projects expanding, Chinese businesses are becoming key players in the occupied regions of Ukraine. While Russia benefits from this cooperation, these business ties could further entrench foreign interests in areas still caught in the grip of war.