Chinese Firms Use Russian Internet Giant Yandex to Expand in Regional Markets

(Yicai) April 16 -- An increasing number of Chinese companies, especially from the gaming and electric car industries, have started using Russian internet and technology firm Yandex, operator of the largest search engine in Russia, to enter and expand in Russian-speaking markets by offering localized service via its advertising and in-vehicle service arms.Chinese firms spent around USD35 million on the Yandex Ads platform last year, while their ranks surged over 50 percent from 2024, Moscow-based Yandex said at an ecosystem innovation conference held in China today. Game developers accounted for half of advertisers, with electronics and home appliances, industrial equipment, information and technology, healthcare, and auto companies among the rest.Chinese game developers show high creativity in content and gameplay, as well as rapid trial and error and agile adjustment, enabling them to quickly establish a foothold in emerging markets, said Sergey Ustinov, general manager for the Asia-Pacific region at Yandex Ads. However, they still face challenges going global, including language localization and policy compliance, he pointed out.To help them tackle these challenges during their expansion in Russian-speaking regions, including Central Asia, Yandex Ads launched a Chinese-localized operation interface this year, Ustinov noted. Chinese companies are also offered one-stop services like Yandex Ads Boost, supporting everything from data analysis to ad monetization, he added.Yandex Auto, an in-vehicle service platform, offers Chinese carmakers cross-scenario data coordinating functions, enabling them to directly access local systems, said Alex Zhou, senior business development manager of its China arm. In addition, it integrates artificial intelligence capabilities to allow users to interact with Yandex's AI assistant Alice not only in their cars but also from home, he stressed."Building a localization system from scratch requires significant investment for Chinese EV makers expanding overseas," Zhou said. "They prefer to directly access a mature ecosystem deeply integrated into users' daily lives, quickly integrating localized navigation, voice interaction, and media services, achieving rapid development from market entry to scaled growth."China became the largest trading partner of the five Central Asian countries of Kazakhstan, Kyrgyzstan, Tajikistan, Uzbekistan, and Turkmenistan last year after trade jumped 12 percent to over USD100 billion from the previous year, surpassing the level for the first time and expanding for the fifth straight year, according to Chinese customs data. Exports rose 11 percent to USD71.2 billion, with strong growth in mechanical, electrical, and high-tech products.Russian is one of two official languages in Kazakhstan, Kyrgyzstan, and Tajikistan, while being widely spoken in Uzbekistan and Turkmenistan.Editors: Dou Shicong, Martin Kadiev