China to Defend Overseas Assets Amid Possible US Sanctions

Chinese regulators conducted an emergency conference with domestic and foreign banks to examine how they could protect the country’s abroad assets from US-led penalties comparable to those imposed on Russia for its invasion of Ukraine.

According to a report from the Financial Times (FT), the conference attendees are concerned that similar actions could be employed against Beijing in the case of a regional military confrontation or other crises.

FT revealed that officials from China’s central bank and finance ministry, as well as executives from dozens of domestic and international organizations, including HSBC, attended the internal meeting held last April 22. 

According to the ministry of finance, all major foreign and domestic banks operating in China attended the meeting.

The meeting opened with remarks from a senior finance ministry official, who claimed the US and its allies’ ability to freeze the Russian central bank’s dollar holdings had alerted Xi’s administration.

Throughout the Ukraine conflict, President Xi Jinping’s administration has maintained firm backing for Vladimir Putin, making Chinese banks and enterprises apprehensive of doing business with Russian entities that could trigger US sanctions.

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