US Considers Sanctions on Chinese Banks Supporting Russian Military War Efforts, China Pushes Back

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The United States is considering sanctions against Chinese banks to put pressure on China to stop supporting Russia's military production, The Wall Street Journal reports.

Despite repeated warnings, China has increased its military-related exports to Russia, strengthening Moscow's military-industrial capacity. This surge has raised concerns about Russia gaining the upper hand in its waged conflict with Ukraine.

China Pushes Back on US Sanctions Against Sino-Russian Trade

The proposed sanctions seek to cut off certain Chinese banks from the global financial system, representing a significant coercive measure by Washington. Conversely, China asserts its right to normal economic and trade relations with Russia, focusing on the principles of equality and mutual benefit.

South China Morning Post reports that Chinese foreign ministry spokesman Wang Wenbin condemned the US actions as "extremely hypocritical and irresponsible," criticizing US bills aiding Ukraine while scrutinizing China's trade relations with Russia.

"China's right to conduct normal economic and trade exchanges with all countries in the world - including Russia - on the basis of equality and mutual benefit cannot be interfered with or undermined, and China's legitimate rights and interests cannot be infringed upon," the official said.

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Russian military cadets take part in a rehearsal of next May 9's 79th anniversary military parade celebrating Soviet Union's victory over Nazi Germany in World War II, on April 23, 2024 in central Saint Petersburg. Photo by OLGA MALTSEVA/AFP via Getty Images

China-Russia Relations Under Scrutiny

Tensions escalate as US Secretary of State Antony Blinken embarks on a three-day visit to Beijing. China urges the US to cease unilateral sanctions on Chinese entities and reflects on America's role in the Ukraine crisis.

While China maintains neutrality in the Russia-Ukraine conflict and calls for a ceasefire, the US and its European allies perceive China as siding with Russia due to its refusal to condemn Russia's actions and its close ties with Moscow.

Furthermore, the surge in trade between China and Russia has accelerated Russia's weapons production, deepening the strategic partnership between Russian President Vladimir Putin and Chinese President Xi Jinping.

In response to potential sanctions, China has adapted its trade strategies, involving smaller banks that are less reliant on the dollar to mitigate transaction disruptions.

European allies, initially hesitant to sanction China, may reconsider their stance given the scale of Chinese support for Russia. The US sees Europe's financial ties with China as a diplomatic leverage point in this complex geopolitical landscape.

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US, China, Russia

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