China appears to distance from sanctions-hit Russia amid war in Ukraine: Reports

As Russia’s invasion of Ukraine entered its fourth week, China is appearing to quietly distance itself from sanctions-hit Moscow as the US and its allies have taken action against the war in Kyiv. Earlier last month, Russia and China had proclaimed that their bilateral ties had “no limits” before Moscow announced its military operation in Ukraine. Now, even though Beijing has publicly refused to condemn the Russia-Ukraine war, Beijing wants to avoid any impact by the West’s sanctions on Moscow. 

China has also repeatedly denounced imposing sanctions on Russia as a way of resolving the crisis, stated CNN. Additionally, the media outlet stated that Chinese companies fear that they would face US sanctions over Beijing’s ties with Russia. These concerns have reportedly contributed to an epic sell-off in Chinese stocks in recent days. However, that slump was finally reversed last week when Beijing pledged that it would pursue policies to boost its sputtering economy and retain the stability of financial markets. 

US officials said China expressed openness to assist Russia

US officials told CNN that they have information regarding China expressing openness to providing Russia with requested military and financial assistance. However, publicly Beijing has dismissed those allegations as “disinformation”. Citing experts, CNN reported that China is attempting to strike “a delicate balance” between supporting Russia rhetorically but without further antagonizing the United States. Chinese banks, as per the report, cannot afford to lose access to US dollars and many Chinese industries also cannot afford to be deprived of US technology. 

Alicia Garcia-Herrero, chief economist for the Asia Pacific at Natixis, in a research report stated that the most significant help that China could offer Russia is through the $90 billion worth reserves that Moscow holds in Chinese yuan. The report has added that Russia’s Finance Minister Anton Siluanov this week said Moscow is seeking to use yuan reserved after the country was blocked from accessing US dollars and euros in the view of the Russia-Ukraine war. 

With China playing comparatively safe, Russian Foreign Minister Sergey Lavrov on Saturday said that Moscow’s cooperation with Beijing will only “get stronger”. According to CNN, at a media event, Lavrov said, “At a time when the west is blatantly undermining all the foundations on which the international system is based, we -- as two great powers -- need to think how to carry on in this world”.

Image: AP