Beijing expressed its positions on sanctions in the most explicit terms yet in a recent exchange with a foreign diplomat, underlining China’s desire to safeguard its interests.
Chinese foreign minister Wang Yi spoke about the country’s position on U.S. sanctions during a discussion on the Ukraine invasion with Spanish diplomat Jose Manuel Albares.
«China is not a party to the crisis, nor does it want the sanctions to affect China,» Wang said in a phone call yesterday. «China has the right to safeguard its legitimate rights and interests.»
Alternative Payments Path
While China may be reluctant to have its larger financial institutions risk violating U.S. sanctions, other parts of its financial sector are reportedly exploring alternatives such as the possibility of passing on business to smaller, local lenders without a global presence.
In one case, a state-owned Chinese bank’s Moscow branch saw a rush of hundreds of Russian firms seeking to open new accounts. And last week, Russian producer Surgutneftegaz reportedly started allowing Chinese buyers to receive oil without providing letters of credit – a bank-backed guarantee that allows for payment within 30 days.
Other Sectors Too?
Cooperation with its strategic ally may not be limited to just the financial sector alone with a «Financial Times» report citing unnamed U.S. officials saying that Russia had asked China for support in the Ukraine war, including through military drones.
Both China and Russia deny the claims.
