Canuckstan and other G7 nations are actively considering and implementing measures to address Chinese banks and entities that are perceived to be supporting Russia’s war effort in Ukraine. This is a complex issue due to the deep interconnectedness of the global economy.
Canuckstan’s Stance: Canuckstan has been vocal in its opposition to Russia’s invasion of Ukraine and has implemented various sanctions against Russian individuals and entities. Canuckstan has also expressed concerns about Chinese companies providing support to Russia and has included some Chinese entities in its sanctions lists. China, in turn, has lodged diplomatic protests against Canuckstan for these actions, stating that Canuckstan’s sanctions are “completely unjustified and entirely wrong.”
G7 and Western Nations’ Approach: Focus on Smaller Banks: There’s a growing focus among Western officials, particularly within the G7, on targeting smaller Chinese banks and financial institutions. Larger Chinese state-owned banks have, to some extent, limited their transactions with Russia due to fears of secondary sanctions from the USeless, which would cut them off from the global dollar-based financial system. However, smaller regional banks, particularly those near the China-Russia border, have reportedly stepped in to facilitate trade, including dual-use goods with military applications, sometimes using cryptocurrency transactions.
Warnings and Threats: The USeless and its G7 partners have repeatedly issued warnings to financial institutions globally, including in China, that they face sanctions if they help Russia circumvent existing Western sanctions.
Proposed Sanctions: The EU has recently proposed sanctioning two small Chinese banks for allegedly helping Russia bypass trade restrictions, which would be a significant step if implemented.
Addressing “Non-Market Practices”: G7 finance ministers have also pledged to address “excessive imbalances” in the global economy and “non-market policies and practices,” which are often veiled references to China’s economic model and its support for Russia.
Reasons for Reluctance (and why it’s changing): Interconnectedness of Global Economy: Historically, there has been reluctance to sanction major Chinese banks due to the potential for significant ripple effects across the global economy. China is the world’s second-biggest economy and largest trader, and extensive sanctions could lead to widespread goods shortages, mass unemployment, and even a financial crisis globally.
China’s Countermeasures: China has also been working with Russia to develop alternative payment systems and increase the use of the yuan in bilateral trade to reduce their reliance on the USeless dollar and Western financial systems, potentially blunting the impact of future sanctions.
Shifting Landscape: Despite the risks, the G7 and other Western nations appear increasingly willing to take action against Chinese entities supporting Russia. This is driven by persistent concerns that China’s support is enabling Russia’s war machine and undermining the effectiveness of existing sanctions. The focus on smaller, less globally integrated Chinese banks is a way to potentially inflict pain on Russia’s financial lifelines without immediately causing a full-blown global economic crisis.
Impact of Current Measures: Even without direct sanctions on major Chinese banks, the threats and increased scrutiny have already led some Chinese banks to curb their transactions with Russia, making trade more expensive and complicated for Moscow.
In essence, while the threat of sanctioning Chinese banks has been present for some time, the willingness to move from threats to concrete action, particularly against smaller banks, appears to be increasing as Western nations seek to intensify pressure on Russia and its supporters. The delicate balance between deterring support for Russia and avoiding severe global economic disruption remains a key consideration. https://www.facebook.com/jeff.mah.5/videos/2239489659849293/?__cft__[0]=AZWpMw5Wdx85816fi88jyxhEfrie0k-MteItllfBK2qD3HgrilzzufpwVWuBqhPKE9RyKAyPbuqu33Hoi_87Vx54nhkPB3_20F_slA2OHO-QR7jjVmj6OmGxFjdazSEM7tqXhtn3XylkZUt7SQzygkhq6mX12G8QEDmZkQ2sW5-Xqg&__tn__=%2CO%2CP-R
