This has included private meetings and calls warning that Washington stands ready to implement sanctions against Chinese financial institutions that facilitate this trade.As per the WSJ report, the potential sanctions would target banks that handle significant transactions aiding Russia’s military-industrial base, potentially cutting them off from accessing the US dollar, a move described by Treasury Secretary Janet Yellen as exposing these banks to the "risk of US sanctions.
"These discussions and warnings come at a time when China and Russia have increased trade in the yuan instead of the dollar, a strategic shift that may protect them from potential escalation in U.S. sanctions.
This financial maneuvering aims to fortify their economies against external pressures, especially from the West.The stakes are high, as the West, including figures like Blinken, has expressed concerns that Russia could potentially outlast Ukraine in a protracted conflict if it continues to receive such robust support from China.
This situation has led to significant discussions among Western allies on how to effectively counteract this support.The implications of cutting major banks off from the global financial system are profound.
Such actions are generally seen as a last resort due to their broad economic impacts, affecting not just the targeted institutions but also their customers and the broader financial stability of the country involved.China's response to the potential sanctions has been one of defiance, with its foreign ministry denouncing the US actions as "economic coercion, unilateralism, and bullying."
The United States is preparing sanctions that could sever some Chinese banks from the global financial system, aiming to halt Beijing's commercial backing of Russia's military enhancements, according to a Wall Street Journal report.This development comes as secretary of state Antony Blinken visits China, amidst growing concerns about Beijing's role in enabling Moscow to reequip its military forces, heavily impacted by the ongoing conflict in Ukraine.“If China purports on the one hand to want good relations with Europe and other countries, it can’t on the other hand be fueling what is the biggest threat to European security since the end of the Cold War,” Blinken said last week.A senior State Department official said Friday that “through Chinese support, Russia has largely reconstituted its defense industrial base, which has an impact not just on the battlefield in Ukraine but poses a larger threat, we believe, to broader European security.”Recent weeks have seen intensified efforts from US officials to pressure China into reducing its trade in dual-use goods—items that have both civilian and military applications. This has included private meetings and calls warning that Washington stands ready to implement sanctions against Chinese financial institutions that facilitate this trade.As per the WSJ report, the potential sanctions would target banks that handle significant transactions aiding Russia’s military-industrial base, potentially cutting them off from accessing the US dollar, a move described by Treasury Secretary Janet Yellen as exposing these banks to the "risk of US sanctions."These discussions and warnings come at a time when China and Russia have increased trade in the yuan instead of the dollar, a strategic shift that may protect them from potential escalation in U.S. sanctions. This financial maneuvering aims to fortify their economies against external pressures, especially from the West.The stakes are high, as the West, including figures like Blinken, has expressed concerns that Russia could potentially outlast Ukraine in a protracted conflict if it continues to receive such robust support from China. This situation has led to significant discussions among Western allies on how to effectively counteract this support.The implications of cutting major banks off from the global financial system are profound. Such actions are generally seen as a last resort due to their broad economic impacts, affecting not just the targeted institutions but also their customers and the broader financial stability of the country involved.China's response to the potential sanctions has been one of defiance, with its foreign ministry denouncing the US actions as "economic coercion, unilateralism, and bullying."
