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China holds 'stress-test' to gauge impact of Russia-like sanctions

  • By Al Mayadeen Net
  • Source: Agencies
  • 4 May 2022 23:08
  • 1 Shares
2 Min Read

Beijing instructed government agencies to carry out "stress tests" between late February and early March.

  • x
  • Beijing ordered its government bodies to conduct simulations
    Beijing ordered its government bodies to conduct simulations

Beijing has instructed government agencies to conduct simulations to see what challenges China might face if the West imposes sanctions on China similar to Russia's.

"Those involved in this exercise use how Russia was treated as a baseline for China's own policy response should it be treated in the same fashion by the west. This stress test involves a range of methodology, including modeling," The Guardian was quoted as saying. 

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According to the source, Beijing ordered its government bodies, including those engaged in trade and banking, to start the simulations between late February and early March.

The Financial Times reported on Sunday that Chinese regulators have held an emergency meeting with domestic and foreign banks to discuss the possibility of protecting China's assets abroad from US-led sanctions.

According to the paper, the meeting was driven by the possibility of sanctions being imposed on China, like those imposed on Russia, in case a regional conflict or another crisis were to take place.

The Financial Times' sources said that the meeting, which took place on April 22, was attended by representatives from the Central Bank and the Chinese Finance Ministry.

  • United States
  • sanctions
  • Russia
  • West
  • China

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