Recently, China and Russia have gradually abandoned the US dollar settlement in favor of other currencies for bilateral trade. This change has had a profound impact on the global currency landscape. The United States, as a hegemon, is worried about this and has adopted severe economic sanctions to defend its dominance in the international financial field. This article will analyze the changes in the trade settlement model between China and Russia, the US sanctions against Russia, the role of the SWIFT international settlement system, and how China and Russia respond to the US threat, revealing the underlying economic and political logic.
The transformation of the Sino-Russian trade settlement modelFor decades, the U.S. dollar has been the main trade settlement currency between China and Russia, but as the two sides continue to cooperate more closely, the problem of unilateral sanctions that may arise from over-reliance on the U.S. dollar has begun to emerge. As a result, China and Russia began to look for alternatives, such as direct transactions using the renminbi and rubles, or the introduction of new means of payment such as digital currencies. These changes help reduce exchange rate risk and improve the flexibility and efficiency of bilateral trade.
This has far-reaching implications for the international monetary system. For a long time, thanks to the fact that the US dollar is the main reserve and trade settlement tool, its position is solid and unshakable. However, with the rise of new economic powers such as China and Russia, the rationality and sustainability of the dollar's hegemony have been deeply considered. The change in the way China and Russia settle trade is seen as a key signal of the international monetary system, which is expected to promote the formation of a multi-currency pattern and challenge the dominance of the US dollar.
The United States has long regarded Russia as a geostrategic competitor and has implemented several rounds of economic sanctions to suppress Russia's influence. Among them, the exclusivity of the SWIFT international settlement system is the most significant. As a key hub for global cross-border interbank payments, the system occupies a central position in the Russian financial system. This move is tantamount to imposing a complete "blockade" on Russia's financial system and is aimed at restricting Russia's international trade and financial activities.
However, Russia did not sit idly by and took a number of measures to fight back. First, the country has accelerated the diversification of trade settlements with other countries, actively seeking new payment systems and currency channels as alternatives. Second, the stability and autonomy of its domestic financial market have been strengthened, and its dependence on the external financial system has been reduced. Moreover, Russia has developed economic partnerships with countries that are also under sanctions, working together to resist pressure from the United States.
The rise and change of the SWIFT international settlement systemThe SWIFT international settlement system is a key channel for cross-border cooperation between global banks, which can be traced back to the 70s of the last century, and was first founded by the European Banking Association to improve the efficiency of cross-border transfers. However, at a time when the United States is consolidating its global financial hegemony, SWIFT has gradually evolved into an important economic sanction adjunct.
The United States has imposed multiple rounds of financial sanctions on Iran and Russia with the help of the SWIFT system to curb the foreign trade and financial behavior of these countries. This one-sided sanction has provoked a backlash from the international community, as the United States is seen as abusing its dominance in the global financial order and infringing on the legitimate rights and interests of other countries.
In response to US sanctions, China and Russia have adopted a "counter-measures" strategy aimed at safeguarding their sovereignty and national interests. Specific measures include: deepening economic cooperation between the two sides, broadening trade channels and the scope of cooperation, and reducing dependence on the US market; actively participating in the reform and construction of the international financial system and vigorously promoting the process of multilateralism and economic globalization; and at the same time, strengthening foreign exchanges and international cooperation in order to obtain broader international support and valuable resources.
In view of the new global situation and the deepening of economic globalization, China and Russia will rise to the challenge, vigorously confront various challenges from the United States, and strive to push the international financial system towards a more fair and balanced goal. At the same time, we are committed to deepening our internal policy reform and self-development to strengthen our economic strength and overall competitiveness, so as to lay a solid foundation for the long-term prosperity of our country.
The comprehensive financial strategy reflected in the Sino-Russian trade settlement demonstrates the diversified, complex and volatile nature of the international financial system. The US insists on imposing unilateral sanctions, which not only undermine the rights and interests of other countries, but also threaten global financial stability and long-term development. To this end, the international community should strengthen coordination and strive to promote the reform and improvement of the financial system and jointly build a fairer and more inclusive international economic order.
In the current context, new economic powers such as China and Russia should deepen solidarity and cooperation to effectively counter threats from traditional powers such as the United States of America. Only by working hand in hand to create a win-win situation can we achieve the ideal of global peace and prosperity, and then promote the steady progress of all human societies in the direction of common progress.