The United States is preparing sanctions that threaten to exclude some Chinese banks from the global financial systemreported Reuters and the Wall Street Journal.
The goal is to end it Beijing’s commercial support for Russian military production.
Amid a visit to China this week by US Secretary of State Anthony Blinken, the question remains whether this major financial threat could hamper trade between China and Russia, which is allowing Moscow to rebuild its military after losses in Ukraine.
On Friday, Blinken criticized China’s aid to Russia’s defense industry, saying Beijing was the main player in Moscow’s war in Ukraine by providing critical weapons components.
FT: Blinken warned allies that China was arming Russia
NATO and the EU are looking for an answer to the threat
In recent weeks US officials have stepped up pressure on China and warned that Washington is poised to take action against Chinese financial institutions facilitating trade in goods that have both civilian and military applications.
The People’s Bank of China and the National Financial Regulatory Administration, China’s top banking regulator, had no comment on the report.
Since the beginning of the war in Ukraine China and Russia have encouraged trade in yuan at the expense of that in dollars – an effort that could protect both countries’ economies from possible broader US sanctions.
The US named China as the main helper of Russia in the war with Ukraine
Washington has accused Beijing of fueling the biggest threat to European security since the Cold War
