China decided to conduct a stress test of the economy in case of sanctions
Chinese agencies are using Western actions against Russia as a basis for developing potential responses if the West does the same with Beijing, writes the Guardian
China decided to stress test in case of imposition sanctions similar to those imposed by the West on Russia, the Guardian writes, citing people familiar with the matter.
Checking the stability of the Chinese economy began in late February— March, when Western countries imposed sanctions against Russia because of the military operation in Ukraine. It involves several key departments of the country— from banking regulation to international trade.
They use the West's actions against Russia as a basis for developing responses if the West does the same with Beijing.
Beijing called such a stress- “natural reaction” test taking into account close relations with Moscow.
However, according to former U.S. State Department sanctions specialist Edward Fishman, the potential economic conflict between the West and China is likely to be smaller than in the case of Russia and will focus “on the struggle for leverage.” in strategic areas such as cutting-edge technology, rather than “trying to cause massive economic disruption.”
Earlier, the Financial Times, citing sources, wrote that the Chinese authorities held an emergency meeting with local and foreign banks to discuss how to protect foreign assets from possible US sanctions.
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Officials fear that the same measures that were taken against Russia are expected by the PRC in the event of a regional military conflict or other crisis, for example, in the event of a Chinese invasion to Taiwan. According to a senior official in the Chinese Ministry of Finance, the Xi Jinping administration was alarmed by the ability of the US and its allies to freeze some of the reserves of the Bank of Russia.
The US has repeatedly threatened to impose sanctions against China in the event of military or economic support for Russia. Beijing called restrictive measures against Moscow unacceptable, and stated that it did not circumvent sanctions, but maintained trade relations with Moscow.
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