The United States plans to introduce new sanctions aimed at shutting certain Chinese banks out of the international financial system. These moves are aimed at preventing China from supporting Russian military production. According to information from the Wall Street Journal, these sanctions are related to the upcoming visit of US Secretary of State Antony Blinken to China and raise the question of whether they can affect trade between China and Russia.
A few days ago, Blinken publicly criticized China for supporting the Russian defense industry, emphasizing that Beijing plays a key role in supporting Moscow’s war effort in Ukraine, mainly by providing essential parts for the military industry.
US officials have recently increased pressure on China, warning that the US is poised to crack down on Chinese financial institutions that facilitate trade in both civilian and military goods.
The response of China and Russia to the possible worsening of American sanctions was that following the conflict in Ukraine they started trading in yuan instead of dollars. With this step, they are trying to protect their economies against the American measures.
Source: Reuters
Cover image source: Getty Images
