Another academics argued in favor of a new economic alliance that was defend China from sanctions tit-for-tat.
Ye Yan, an economist at China National Oil and Gas Exploration and Development Company, wrote in January that a coming” anti-sanction business system” that would enable member states to business discounted items had been inspired by the less expensive Russian crude that China has been enjoying as the result of American sanctions.
Foreign experts also suggested that Beijing take advantage of EU gaps and US-allies alliances. There might not be enough unity in the West, according to one foreign researcher.
Due to the much greater amount of investments that and rely on its business, Martin Chorzempa, a senior colleague at the Peterson Institute for International Economics in Washington, said it would be orders of magnitude harder to achieve wide global consensus for sanctioning China than for Russia.
SEEKING ANSWERS
Some experts have emphasized the limitations of yuan internationalization and suggested that China should ease sanctions by forging closer ties with the US and its allies economically.
It was unlikely that the US would acquire trillions of dollars or refuse to pay the principal and interest on Treasury charges China holds, according to Yu, a former PBOC advisor, in his 2022 report.
Yu wrote,” The United States will not do anything like” kill a thousand enemies and destroy eight hundred of its own” due to the close economic and financial relations between China and the US.
A similar argument was made by Wang, a representative of China International Futures, next month, who noted that the costs and risks associated with the transportation and storage of large quantities of the metal prevented gold from serving as an effective replacement for dollar reserves.
In light of these problems, many experts advise Beijing to expand home financial markets in order to align the interests of the US, its supporters, and businesses there with China, raising the price of sanctions.
The EU and US have attempted to de-risk and extend supply chains and on-shore chip production in part in response to this. But according to Chorzempa, it may take time for these policies to pay off.
According to him,” China’s much more prominent role in global value chains may also give it more options for circumvention( of sanctions ), and its capacity to replace indigenous production with unusual technology is much greater than Russia’.
The PBOC scientist Chen thought about China’s resection from SWIFT as a” radioactive” solution and came to the conclusion that the best way to protect China was to increase cooperation with the US.
He claimed that” the common penetration of the Chinese and American markets will eventually reduce the commitment to impose economic punishment.”