British banks have begun to prepare for possible sanctions against China

Major UK banks have begun preparing for the possible introduction of Western sanctions against China and have provided the British and American governments with a draft action plan for such an eventuality.

This was reported by Reuters with reference to Neil Willey, director of sanctions at the banking and financial association UK Finance.

UK Finance organized fortnightly meetings of major British and foreign banks for several months to draw up the project, Willey said. He says the document includes sharing lessons learned from the imposition of Western sanctions, including on Russia, and discussing the consequences that any restrictions on China could entail.

After many companies were baffled by the speed and scale of sanctions against Russia, banks have decided to put plans in place if geopolitical tensions between the West and China escalate, seven financial industry sources told Reuters.

Three senior London bankers, who chose to remain anonymous, told the agency that banks were discussing the possibility of introducing tougher Western sanctions on China in the future.

Large banks took such steps amid growing tensions between the West and China over the status of Taiwan, which Beijing considers Chinese territory.

US President Joe Biden signed an executive order in July allocating a $345 million military aid package to Taiwan.

In response, Beijing called on Washington to uphold the “one China principle” and immediately stop selling arms to Taipei, as well as “any form of military collusion between the United States and Taiwan,” and honor its commitment not to support “Taiwan independence.”