China is conducting "stress tests" to see how its economy will cope and respond if the U.S. imposed Russia-style sanctions on it
Russia's narrative that sanctions on it are a prelude to Western economic warfare against China is gaining traction in Beijing
— Samuel Ramani (@SamRamani2) May 5, 2022
- China Has ‘Financial Nuclear Bombs’ If West Levies Russia-Style Sanctions, Beijing Warns
by Tyler Durden, https://www.zerohedge.com/
Multiple analysts at Chinese state-linked think tanks and banks have weighed in on the Biden administration’s recent threats to punish the world’s second-largest economy over China’s refusal to condemn Russia’s war in Ukraine, and amid US charges that it could be helping Moscow evade sanctions, or even quietly resupplying Putin’s military machine (charges which at this point have remained without evidence).
“It is necessary to speed up the construction and external connection of the cross-border yuan clearing system CIPS … [But] the primary choice is to continue to strengthen cooperation with Swift,” Wang Yongli, a former vice-president with the Bank of China and a former board member for Swift, was cited as saying in a fresh South China Morning Post report this week.
However, China is taking note and studying its own preparedness and future options in the wake of the US drastic measure of freezing Russia’s central bank assets overseas. On this, Yongli underscored to the SCMP that “The huge foreign exchange reserves are hard-won, and they are China’s ‘financial nuclear bombs’ with a powerful deterrent effect. It must be used properly rather than arbitrarily, and cannot be easily slashed.”