According to the global network, on the eve of Blinken's visit to China, the US media, citing "people familiar with the matter", reported that the Biden administration is studying the proposed sanctions to exclude some Chinese banks from the global financial system, citing these banks as the main intermediaries for China's commercial exports to Russia.
Blinken
The so-called "insiders" are nothing more than a temptation by the US side. One of the main topics to be discussed with the Chinese side during Blinken's visit to China includes Sino-Russian cooperation. According to the consistent practice of the US side, in order to force China to compromise and make concessions, it is bound to resort to maximum pressure. This initiative is not only a test of China, but also a blatant threat.
China's response to this is very clear. At the regular press conference of the Ministry of Foreign Affairs on April 23, spokesman Wang Wenbin responded that the US side is making groundless accusations about normal cooperation between China and Russia while vigorously assisting Ukraine, which is very hypocritical, and China firmly opposes it. China is not the creator of the Ukraine crisis, nor is it a party to the crisis, and has always adhered to an objective and fair position, actively promoted peace talks, did not take sides, and did not accept any form of blame-shifting. China has the right to carry out normal trade with Russia on the basis of equality and mutual benefit, which is China's legitimate rights and interests and brooks no infringement.
Wang Wenbin
What is certain is that no matter how threatened by the US side, what Blinken will say during his visit to China, China's position will not change. On the one hand, as an independent sovereign power, our foreign policy brooks no interference by other countries, and this is our bottom line. On the other hand, if the US threatens to impose sanctions, we will compromise, and in the future, the US will only gain an inch and continue to threaten sanctions. So we have no choice but to resolutely defend our rights and interests and never compromise.
The conflict between Russia and Ukraine has been going on for more than two years, and the US is now playing this trick with obvious ulterior motives. On the one hand, the U.S. election is approaching, and Biden needs to find more plus points to help himself win votes. But the current situation on the battlefield between Russia and Ukraine is obviously not conducive to Biden's election. Although the United States recently passed a bill of more than $60 billion to aid Ukraine, the outside world generally does not believe that this can reverse the situation. Therefore, the Biden administration has hit China again, trying to create a chilling effect on Sino-Russian cooperation by exerting pressure on China, and at the same time making other countries that still maintain normal cooperation and exchanges with Russia jealous, so that Russia will bear more external pressure and have to adjust its front-line strategy.
Putin
On the other hand, the Russia-Ukraine conflict is just an excuse, and what the United States really wants to do is to brew sanctions against China. Releasing the wind in advance is a vain attempt to "surrender the army without a fight". If the United States imposes sanctions on China's financial institutions on a large scale, the consequences will not only seriously damage Sino-US relations, but will also cause a huge chain reaction to the global economy, which is no less powerful than a "financial nuclear bomb" and is an extremely irresponsible and dangerous practice.
However, from the perspective of Sino-Russian cooperation alone, the impact of the threat of US sanctions will be very limited. Recently, Russian Foreign Minister Sergei Lavrov publicly stated that China-Russia trade with Russia is rising, and at the same time, more than 90% of bilateral economic and trade cooperation is settled in local currency, which has basically achieved de-dollarization. This also means that the threat of sanctions against Chinese companies by the United States using the hegemony of the dollar will have little impact on the cooperation between China and Russia.
Sino-Russian cooperation
However, it is undeniable that if the United States imposes sanctions on some Chinese banks, it will cause a lot of trouble to the relevant financial institutions on the mainland. It also proves once again how important it is to de-dollarize and avoid the impact of deteriorating political relations on the financial system. As a matter of fact, the mainland has also paid more and more attention to this issue in recent years.
Over the past decade, China has sold more than $550 billion in U.S. debt. Except for a small increase in holdings in a few months, the pace of reducing holdings has been maintained most of the time, especially since last year, and the pace of selling has accelerated significantly. At the same time, China is hoarding gold heavily. Over the past 16 months, China has added more than 300 tonnes of gold to its reserves.
U.S. Treasuries
In the future, as the game between China and the United States becomes increasingly fierce, it is very likely that the United States will repeat its old tricks and replicate the financial sanctions applied to Russia on the mainland, so it is necessary for us to take precautions and prepare for the final showdown in advance.