FT learns about discussions in China on protecting foreign assets from US sanctions

FT interlocutors reported,that CHINA is concerned about the freezing of foreign assets of the Bank of RUSSIA and fears the introduction of such measures against Beijing "in the event of a regional military conflict or other crisis"

Chinese regulators held an emergency meeting with local and international banks to discuss ways to protect China 's overseas assets from possible US sanctions similar to those imposed on Russia, the Financial Times reported, citing people familiar with the discussion.

According to the interlocutors of the publication, representatives of the central bank and the Ministry of Finance of China, as well as heads of local and international banks, took part in the discussion on April 22. The publication noted that the meeting began with the words of a senior official of the Ministry of Finance of China that Beijing was alarmed by the ability of the United States and its allies to freeze the DOLLAR assets of the Bank of Russia.

According to the Financial Times, Chinese officials are wary of imposing such measures against Beijing "in the event of a regional military conflict or other crisis," while the meeting did not mention specific scenarios in which China could face sanctions.

One of the sources said that in the event of a Chinese attack on Taiwan, “the decoupling of the Chinese and Western economies will be much more serious” than with Russia, since Beijing’s economic influence affects the whole world. Another source of the newspaper noted that the Chinese banking system is not ready to freeze its foreign exchange assets or disconnect from the SWIFT system.

The United States threatened China with consequences for helping Russia Politics

The Financial Times previously reported that the US and the UK held high-level talks in early March to discuss options for closer cooperation to reduce the likelihood of a war with China over Taiwan. 

Taiwan is an island in the South China Sea, about 150 km off the coast of China. In 1949, during the revolution, the territory declared secession from China, but Beijing considers it one of the Chinese provinces.

The United States does not have official diplomatic relations with Taiwan, but at the same time sells arms to Taiwan. Officially, the United States, like Russia , supports the One China principle.

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In October last year,  US President Joe Biden said that Washington would support Taiwan in the event of a potential attack by the PRC. According to him, the United States has assumed the corresponding obligations.

In mid-April, Beijing decided to conduct exercises off Taiwan, saying it was provoked by "serious misinformation" the US was sending to "Taiwanese separatists." Prior to that, a delegation of six US congressmen arrived on the island to meet with the President of Taiwan, REUTERS wrote. 

On April 26, US Secretary of State Anthony Blinken said that Washington intends to provide Taiwan with everything necessary to protect against any potential aggression, including from China.

In response, Beijing urged the US to avoid "false signals to separatist forces supporting 'Taiwan independence' so as not to seriously damage China-US relations and 'peace and stability on both sides of the Taiwan Strait'."

See also US against Taiwan independence from China 08:01

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