(MENAFN) Recent reports from the Wall Street Journal (WSJ) indicate that United States lawmakers are in the process of drafting sanctions aimed at Chinese banks to disrupt Beijing's ongoing cooperation with Russia. The proposed measures are part of a strategy to sever certain Chinese financial institutions from the global financial system, serving as diplomatic leverage for United States Secretary of State Antony Blinken. Blinken is expected to utilize the threat of sanctions during his upcoming visit to China this week, employing it as a last resort if diplomatic efforts fail to persuade Beijing to limit its alleged military-related exports to Russia.
According to sources cited by the WSJ, the targeted sanctions are intended to address China's role as a significant contributor to Russia's military operations against Ukraine. Blinken previously emphasized China's involvement in providing critical components for weaponry to Russia, including machine tools, semiconductors, and other dual-use items, which have facilitated the rebuilding of Russia's defense industrial base.
The move to impose sanctions on Chinese banks stems from a decree issued by United States President Joe Biden in December of the previous year. The decree authorized sanctions on foreign financial institutions that continue to engage in transactions with Russia, particularly targeting lenders operating outside United States and European Union jurisdictions. These financial institutions are believed to aid Russia in sourcing sensitive items such as semiconductors, machine tools, chemical precursors, ball bearings, and optical systems, which have military applications.
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