US aims to decouple from China by restricting access to dollar: NYT
In order to avoid circumvent replacement financing, the report says that the US Treasury has been held talks with its allies to get them to follow suit.
The New York Times reported on Thursday, citing sources, that Washington is considering halting Beijing's access to US dollars over concerns about alleged Chinese military ambitions.
As the Biden administration is currently working on finalizing rules that would restrict US investment in China, the report states that cutting the dollar supply could severely impact China's capacity in developing new military technologies.
In order to avoid circumventing replacement financing, the report says that the US Treasury has been holding talks with its allies to get them to follow suit.
US-China relations have been strained due to a series of provocative actions by the US which include visits by US lawmakers to Taiwan, fabricating false information on an alleged 'China threat' to destabilize diplomatic relations with regional neighbors, and more generally the spread of anti-Chinese sentiment across the globe.
Most recently, Secretary of State Blinken visit annulled a visit to China over an incident involving the accidental breach of US airspace by a Chinese weather balloon which was labeled a spy balloon by the Pentagon.
Read more: China balloon prompts Japan to investigate previous aerial objects
The US says it wants to punish China for not opposing Moscow's actions in Ukraine but China has said several times that it supported facilitating a peace process between the two parties.
China has blamed the US for fueling the conflict due to its insistence on the expansion of NATO to the east.
During an interview with PBS Newshour on Wednesday, US President Joe Biden admitted that he warned Chinese President Xi Jinping last summer that China could lose Western investments over China's support for Russia. He further said that Xi is facing serious challenges ahead, including in the economy, though he also has 'great potential'.
He also stated that the US was not "looking for conflict" with China and that this has been Washington's policy "so far".
Following these statements, Chinese Foreign Ministry Spokeswoman Mao Ning told a briefing today, "Such statements by the US side are extremely irresponsible and violate the foundations of diplomatic etiquette. China expresses acute dissatisfaction and strongly opposes this."
Read more: India replaces US dollars with dirhams in Russian oil trade: Reuters