Illicit chip flows to Russia seen slowing, but China, Hong Kong remain transshipment hubs

HONG KONG/WASHINGTON: Semiconductors and other restricted goods shipped through China and Hong Kong to fuel Russia’s war effort fell by a fifth this year previously undisclosed U.S. Commerce Department data shows, but Hong Kong remains a global sanctions evasion hotspot.

Transshipments through Hong Kong of Common High Priority Items (CHPL) – advanced components including microelectronics deemed by the U.S. and European Union as likely to be used for Russia’s war in Ukraine – fell 28% between January and May, a U.S. Commerce Department official told Reuters.