The US administration is preparing a package of sanctions against Chinese banks

The United States is considering imposing sanctions against Chinese banks, which China uses in trade with Russia.

We are talking primarily about those financial institutions that allegedly help export dual-use goods from China to Russia. The restrictions of the U.S. administration are aimed at cutting off these banks from the dollar, limiting their opportunities in the international market.

A similar option, will be implemented if diplomatic efforts fail to convince China to abandon trade with Russia. Recently, U.S. officials in private meetings and phone conversations have “increased pressure on Beijing” and warned that Washington is ready to resort to restrictions on Chinese financial institutions.

Previously, however, such efforts have “produced short-lived results.” If some Chinese banks, according to the newspaper, refused to participate in trade in Russia, they were subsequently replaced by “little-known regional” institutions that “work less with the dollar and, therefore, have less fear of U.S. sanctions.”

In this regard, the United States is trying to convince European countries to also put pressure on China, as Europe has more diplomatic influence over Beijing, according to the United States’ position.

Earlier, Liu Pengyu, spokesman for the Chinese embassy in Washington, said that the US sanctions against Chinese companies for ties with Russia are an act of economic coercion and intimidation. According to him, such steps are unacceptable and will inevitably entail retaliatory measures by China.