“In the event of war, will we resist any sanctions?” – Corriere.it

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The Financial Times reported on the “emergency meeting” between banking authorities and institutions to understand how to respond if – in the face of a “regional war”, such as strong action in Taiwan – the same sanctions are applied to China. imposed on Russia: “It would be total economic devastation and mutual financial nuclear war”

The Financial Times has collected information on the holding of an “emergency meeting” in Beijing on April 22 at which financial regulatory authorities have developed A strategy to prevent any US sanctions from hitting Chinese banks.

In addition to dozens of state-owned banks, the meeting was also held with large international credit institutions operating in China (such as HSBC).

Executives of the Central People’s Bank and the Ministry of Finance are concerned about Chinese assets abroad: Beijing holds nearly $3.2 trillion in foreign currency, of which $1.5 trillion is in US bonds Of course, the possibility of a freeze in the event of a crisis must be carefully evaluated.

A senior representative from China’s Ministry of Finance said at the meeting that the Chinese president’s administration was impressed by the ability of the United States, the European Union and other allies to freeze dollar assets of the Russian Central Bank.

According to the sources of the “Financial Times”, they in Beijing are not looking much at the possibility of getting involved in the battle of US and European sanctions against Russia: the crisis plan envisages Western reaction to the action of Chinese power in Taiwan (Which in Xi Jinping’s mind would not be an “invasion” but a “legitimate reunification”).

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“If China attacks Taiwan, separating the Chinese and Western economies will be much more difficult than with the Russian economy, because China’s economic footprint affects every part of the world,” one of the sources told the Financial Times.

Another participant said, “The Chinese banking system is not ready to freeze dollar assets, or to exclude the SWIFT system, as happened to Russia.”

However, some bankers present were questioning whether Washington was really capable of cutting economic ties with China, with Beijing being the world’s second most important economy. “Destruction would be mutually assured, as in the case of nuclear war,” said Andrew Collier, managing director of East Capital Research in Hong Kong.

The syntax of all these maneuvers seems straightforward: Beijing is not willing to risk everything To support unlimited friendship and strategic partnership with Moscow. There is always (and only) Taiwan in Xi’s long-term plans.

May 2, 2022 (change 2 May 2022 | 22:08)

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