Al Mayadeen English

  • Ar
  • Es
  • x
Al Mayadeen English

Slogan

  • News
    • Politics
    • Economy
    • Sports
    • Arts&Culture
    • Health
    • Miscellaneous
    • Technology
    • Environment
  • Articles
    • Opinion
    • Analysis
    • Blog
    • Features
  • Videos
    • NewsFeed
    • Video Features
    • Explainers
    • TV
    • Digital Series
  • Infographs
  • In Pictures
  • • LIVE
News
  • Politics
  • Economy
  • Sports
  • Arts&Culture
  • Health
  • Miscellaneous
  • Technology
  • Environment
Articles
  • Opinion
  • Analysis
  • Blog
  • Features
Videos
  • NewsFeed
  • Video Features
  • Explainers
  • TV
  • Digital Series
Infographs
In Pictures
  • Africa
  • Asia
  • Asia-Pacific
  • Europe
  • Latin America
  • MENA
  • Palestine
  • US & Canada
BREAKING
Lebanese Ministry of Health: Final toll from airstrike on car in Zebdine, Nabatieh District: Two martyrs, four injured
Egyptian media: Indirect talks between Hamas and Israelis begin in Sharm el-Sheikh.
AFP: France's new PM Sebastein Lecornu resigns just hours after unveiling cabinet.
Trump: Technical teams will meet again on Monday in Egypt to discuss and clarify the final details, and the first phase is scheduled to be completed this week
US President Donald Trump: Talks with Hamas have been very successful and are moving at a rapid pace
Local sources in Aleppo: Violent clashes erupt between the SDF and factions affiliated with the transitional authority on the Deir Hafer and Tishrin Dam fronts in the eastern Aleppo countryside
Israeli media: Interceptor missiles fired in an attempt to shoot down the drone
IOF Spokesperson: Sirens sounded amid suspected "enemy aircraft" infiltrating the Eilat area
Israeli media: "Israel" won the battle but lost the war strategically and politically
Israeli media: Ben Gurion Airport's airspace closed to air traffic following missile launch from Yemen

West escalates financial warfare against Russia, China: Foreign Policy

  • By Al Mayadeen English
  • Source: Foreign Policy
  • 26 Jun 2024 18:48
5 Min Read

The G-7's agenda extends beyond immediate actions, hinting at future measures aimed at isolating Beijing from the global financial system.

Listen
  • x
  • AP photo
    From right, French President Emmanuel Macron, Japan's Prime Minister Fumio Kishida, U.S. President Joe Biden, European Commission President Ursula von der Leyen, Canada's Prime Minister Justin Trudeau, Britain's Prime Minister Rishi Sunak, European Council President Charles Michel, German Chancellor Olaf Scholz and Italian Prime Minister Giorgia Meloni watch a skydiving demo during the G7 world leaders summit at Borgo Egnazia, Italy, Thursday, June 13, 2024 (Luca Bruno/Domenico Stinellis)

Washington and Western allies have launched a new phase of financial warfare targeting Russia and China, marking a potent yet potentially perilous escalation, an analysis by columnist Michael Hirsh for Foreign Policy details.

Hirsh argues that such measures, including action taken at the recent G-7 summit to redirect billions in frozen Russian assets to Ukraine, alongside fresh sanctions on Chinese banks, could erode the dominance of the US-led international financial system.

This development is seen as potentially satisfying to Russian President Vladimir Putin and Chinese President Xi Jinping, who seek to establish an alternative financial order centered on the renminbi, Hirsh claims.

The G-7's maneuvers signal a departure from traditional norms in international finance, prompting concern among sovereign wealth funds, central banks, corporations, and private investors—especially from vulnerable countries in the global south—that may seek to diversify away from reliance on dollar and euro-denominated assets.

Read more: US should terminate defective counter-terrorism programs in Africa: RS

A senior Biden administration official described the move as unprecedented, noting, "Never before in history has a multilateral coalition immobilized the sovereign assets of an aggressor country and then found a way to unlock the value of those assets for the benefit of the aggrieved party as it fights for its freedom. That’s what happened at this G-7."

But leveraging foreign assets, even those termed by Hirsh as "aggressor" nations like Russia, poses significant risks and sets a precedent that could escalate international tensions. Jon Bateman from the Carnegie Endowment for International Peace noted, "Once a new sanction becomes seen as effective, its usage tends to proliferate," pointing to recent innovations in export controls used against both Chinese and Russian targets.

The G-7's agenda extends beyond immediate actions, hinting at future measures aimed at isolating Beijing from the global financial system. Meanwhile, China has quietly insulated itself from potential financial fallout due to its support for Russia, with major banks reducing exposure to Russia while smaller institutions facilitate trade settlements in renminbi and rubles.

Related News

G7 calls on Iran against uranium enrichment

UK living standards squeezed despite leading G7 growth

The possibility of freezing Chinese assets in response to geopolitical crises, such as a conflict over Taiwan, raises concerns about systemic financial disruptions and global economic fallout. Unlike the situation with Russia, which required extensive negotiations with the EU to freeze assets predominantly located in Europe, China's vast and globalized asset base presents a tougher challenge under international emergency powers.

The deep economic interdependence between China and the West has deterred complete economic decoupling, reflecting what former US Treasury Secretary Larry Summers termed a "financial balance of terror." This integration complicates the imposition of broad sanctions similar to those imposed on Russia, as Western economies are deeply intertwined with China's economic fabric.

William Reinsch, from the Center for Strategic and International Studies, indicated, "there will be more resistance to imposing the scope of sanctions we have imposed on Russia because Western economies are far more intertwined with China’s than they were with Russia's."

Read more: De-dollarization underway as a result of US policies: Senate candidate

US dominance effort doomed

Earlier today, at the Primakov Readings forum in Moscow, Russian Foreign Minister Sergey Lavrov said that Washington's efforts to sustain its global dominance through political maneuvers are destined to fail, given the increasing number of countries opting for autonomous foreign policies.

"There is no doubt that this course of maintaining hegemony at all costs is doomed to failure. Even if in the foreseeable future the US remains one of the world's centers, and this is likely to be the case, it does not mean that this will happen within the framework of preserving the US-centered world order," Lavrov said at the Primakov Readings forum in Moscow.

The top diplomat also noted that a growing number of countries in Eurasia, Asia-Pacific, the Middle East, Africa, and Latin America are increasingly pursuing independent foreign policy paths, which cannot be overlooked. He added that these countries are gradually freeing themselves from Western influence.

"The outline of a more equitable, multipolar, and polycentric architecture is taking shape before our eyes. And this objective process has accelerated, noticeably accelerated with the start of the special military operation in Ukraine in 2022," Lavrov said.

Earlier this month, Lavrov highlighted that the expansion of  BRICS serves as evidence of the ongoing formation of a multipolar world order, where emerging political centers advocate for equality and diversity. This trend persists despite the efforts of the US and its allies to maintain their "elusive dominance."

  • G7
  • Russia
  • Sanctions on Russia
  • China
  • dedollarization

Most Read

Hamas fighters stand in formation ahead of a ceremony to hand over Israeli captives to the Red Cross in Nuseirat, Gaza Strip, Feb. 22, 2025. (AP)

Hamas reviews Trump’s Gaza ceasefire plan as PIJ rejects

  • Palestine
  • 30 Sep 2025
Iraq at a crossroads: A new war front?

Iraq at a crossroads: A new war front?

  • West Asia
  • 30 Sep 2025
A Hamas fighter in combat fatigues stands before the ceremony for the handover of Israeli captives to the Red Cross in Nuseirat, central Gaza Strip, Saturday, February 22, 2025 (AP)

Hamas responds to Trump plan, backs Gaza withdrawal, exchange

  • Politics
  • 3 Oct 2025
Tucker Carlson speaks at a memorial for Charlie Kirk, Sunday, September 21, 2025, at State Farm Stadium in Glendale, Arizona (AP)

Tucker Carlson: Israeli officers gave orders on Iran inside Pentagon

  • Politics
  • 2 Oct 2025

Coverage

All
War on Gaza

Read Next

All
French far-left leader Jean-Luc Melenchon, listens to France Unbowed party parliament member Mathilde Panot during a demonstration after a Gaza-bound aid flotilla was illegally raided by the IOF, Thursday, Oct. 2, 2025 in Paris (AP)
Politics

French MPs on hunger strike after their detainment in 'Israel'

Gaza residents fear trap as Trump’s plan offers little relief
Politics

Flying promises and bombs: Gazans hopeful, yet deeply distrustful

Two years of destruction: Gaza endures war, famine, and displacement
Politics

UNRWA details Gaza's two years under war, famine, and displacement

In this photo provided by the North Korean government, North Korean leader Kim Jong Un, center, visits a military hardware exhibition in Pyongyang, Notrh Korea Saturday, Oct. 4, 2025 (AP)
Politics

DPRK's Kim unveils new advanced weapons at 'Defiance Development 2025'

Al Mayadeen English

Al Mayadeen is an Arab Independent Media Satellite Channel.

All Rights Reserved

  • x
  • Privacy Policy
  • About Us
  • Contact Us
  • Authors
Android
iOS