China has abolished subsidies for the import of metals from Russia: consequences for the economy.

According to inkorr.com: In September, the Chinese government abolished unofficial subsidies that had previously assisted state-owned companies in purchasing copper and nickel from Russia. This announcement was made by the Foreign Intelligence Service of Ukraine.

According to intelligence, these benefits – in the form of discounts or fixed payments – previously compensated for logistical costs, provided competitive advantages to Russian suppliers, and supported the stability of supply chains.

Reasons for the abolition of subsidies

Experts believe that the decision to abolish subsidies is part of a strategy to optimize state expenses and diversify import flows. China is investing in metal extraction in Indonesia, Africa, and Latin America, also trying to protect its domestic market from price fluctuations related to Russian metals, which are sold at discounts due to sanctions.

Impact on the import of Russian goods

These changes have significantly affected the volume of Russian products imported to China. For example, during the period from January to June 2025, an 11% decrease in oil imports, a 28% decrease in oil products, a 13% decrease in liquefied gas, and a 10% decrease in wood and coal was recorded.

According to intelligence, this situation will lead to a decrease in the competitiveness of Russian metals in the Chinese market, as well as a significant reduction in profits for leading manufacturers such as 'Norilsk Nickel' and 'Rusal'.

Thus, the abolition of subsidies for the import of copper and nickel from Russia will have a significant impact on the volumes of supplies and profits of Russian companies that supply metals to China. These events could change the metal market in the region and pose new economic challenges for suppliers who relied on Russian resources.