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IPFS News Link • Sanctions

China Must Prepare To Be Cut Off From Dollar-Based Financial System, Official Warns

• https://www.zerohedge.com by Tyler Durden

Which is why it's hardly surprising that senior financial regulators in Beijing are again echoing criticisms first formulated by Russian President Vladimir Putin amid growing fears that, next time, the sanctions won't be just a "warning shot".

But as President Trump threatens to leverage even more sanctions against the Chinese government as well as senior officials over transgressions like corporate espionage and illegal IP theft, one senior official has warned that it's now 'inevitable' that the US will soon apply sweeping Russia-style sanctions to China.

Such brazen punitive sanctions would likely prove unpopular among Washington's closest allies, especially at such a precarious time for the global economy. But they would certainly serve to accelerate the economic decoupling that White House China hawks like Peter Navarro and Matt Pottinger have hoped for. Which is perhaps why Fang Xinghai, a vice-chairman at the China Securities Regulatory Commission, warned on Monday that China's reliance on the international dollar-based financial system makes it vulnerable.


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