China is working to protect its overseas assets amid fears that the United States may impose Russian-style sanctions, reports say
China is working to protect its overseas assets amid fears that the United States may impose Russian-style sanctions, reports say

China is working to protect its overseas assets amid fears that the United States may impose Russian-style sanctions, reports say

  • Chinese officials are meeting with banks to find ways to protect overseas assets.
  • The country is said to be concerned that the United States may impose sanctions similar to them Russia.

China is reportedly taking steps to protect its overseas assets, amid fears that the country may one day be subject to sanctions similar to those imposed on Russia.

The Russian invasion of Ukraine has given hard lessons to China, which itself is involved in a long-running dispute with Taiwan. China has long rejected its neighbor’s claim to sovereignty, which has boosted speculation, it will one day invade and annex Taiwan quite.

The United States and other Western nations have sanctions imposed against Russia in an attempt to stop Putin’s war in Ukraine. Sanctions include SWIFT bana full blockade of major Russian financial institutions, measures targeting Russia’s sovereign debt, and even sanctions against oligarchs and their families.

According to Financial TimesChinese officials recently held an emergency meeting with domestic and foreign banks to discuss how the state could protect its assets should it ever face similar sanctions.

People familiar with the conference, which took place on April 22, told the FT that the meeting consisted of officials from China’s central bank and finance ministry, executives from dozens of local and international lenders such as HSBC and representatives from other domestic banks operating in China.

A source told the newspaper: “If China attacks Taiwan, the decoupling of the Chinese and Western economies will be far more serious than [decoupling with] Russia, because China’s economic footprint affects all parts of the world. ”

China and Russia are working on a homemade alternative to the SWIFT payment system Russia’s financial messaging system and China’s cross – border payment system.

According to South China Morning Post, China has $ 3.2 trillion in foreign exchange reserves. The FT reported that senior regulators, including Yi Huiman, chairman of the China Securities Regulatory Commission, and Xiao Gang, who heads the CSRC from 2013 to 2016, asked bankers how they could protect their overseas assets.

“They are following with great interest to see how effective sanctions imposed on Russia can be effectively applied to China,” Douglas H. Paal, a non-resident researcher at the Carnegie Endowment for International Peace, told Insider in March.

“If there is an invasion of Taiwan, China would expect the United States to call for as wide a range of sanctions as possible.”

Andrew Collier, CEO of Orient Capital Research in Hong Kong, told the newspaper that the Chinese government was right to be concerned, “because it has very few alternatives and consequences. [of US financial sanctions] are catastrophic. “

Insider approached China’s Foreign Ministry for comment.

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