Results for: US Sanctions

Washington’s reported threats to sanction Chinese banks and potentially remove China from the Swift network have raised concerns among analysts, who warn of severe global financial instability and damage to US-China relations.

Analysts stress that any financial sanctions against China, a major trading partner with the world, would disrupt transactions in Europe and the US, where businesses heavily rely on China. Moreover, removing China from the Swift network would create significant blockages in trade transactions, leading to cost-push inflation across the board.

In addition to the economic consequences, sanctions would further strain the already tense US-China ties, potentially escalating the conflict and making cooperation on other issues more difficult. Analysts also highlight China’s efforts to develop its own intercountry transaction system and internationalize the yuan, which could accelerate if bank sanctions were imposed.

Pakistan and Iran have reaffirmed the importance of energy cooperation and electricity trade despite potential US sanctions. During Iranian President Ebrahim Raisi’s visit to Pakistan, the two countries agreed to expedite a free trade agreement and boost bilateral trade to $10 billion over five years. They also emphasized collaboration on combating terrorism, narcotics smuggling, and other threats. The joint statement comes after US warnings about sanctions risks, highlighting the delicate balance in regional relations.

Chinese exports to Russia have declined for the first time since the onset of the Ukraine war in 2022, marking a shift as Chinese companies navigate secondary sanctions imposed by the US to target industries supporting Russia’s military supply chain. Despite initially elevated trade volumes after the invasion, Russia’s dependence on China has grown, with bilateral trade reaching $240 billion last year. However, China’s General Administration of Customs reported a 15.7% decline in exports to Russia in March 2023 compared to the previous year, driven by payment restrictions in Chinese yuan and US sanctions on machinery equipment exports. Experts believe the threat of secondary sanctions poses a significant challenge to Russia’s economic stability and highlights the importance of the political and strategic relationship between Russia and China in finding ways to circumvent the sanctions.

The United States State Department issued a statement expressing concern over business dealings between Pakistan and Iran, suggesting a potential risk of sanctions. The department advised parties considering ventures with Iran to be aware of this risk, while also emphasizing the significance of economic ties between the US and Pakistan.

Despite US sanctions, China has reportedly acquired advanced chips that were banned for export to the country. This move raises concerns about China’s ability to circumvent export controls and potentially use the chips for military purposes.