“Shadow Reserves”: China’s Key to Parry U.S. Financial Sanctions
In the ongoing U.S.-Chinese financial war, Beijing has focused on insulating China’s strategic trade from dollar-based financial sanctions. This objective has animated the growing push for China-Saudi renminbi settlement. It has also accelerated Chinese efforts to deepen ties with crude oil suppliers inclined to buck the West. One of the most effective and longstanding means of financial “de-risking,” however, has been the Chinese central bank’s steady shedding of its official U.S. dollar reserve holdings. This development is important because it will impact Washington’s ability to impose financial sanctions on China in the event of an invasion or blockade of Taiwan. The post “Shadow Reserves”: China’s Key to Parry U.S. Financial Sanctions appeared first on War on the Rocks.
In the ongoing U.S.-Chinese financial war, Beijing has focused on insulating China’s strategic trade from dollar-based financial sanctions. This objective has animated the growing push for China-Saudi renminbi settlement. It has also accelerated Chinese efforts to deepen ties with crude oil suppliers inclined to buck the West. One of the most effective and longstanding means of financial “de-risking,” however, has been the Chinese central bank’s steady shedding of its official U.S. dollar reserve holdings. This development is important because it will impact Washington’s ability to impose financial sanctions on China in the event of an invasion or blockade of Taiwan.
The post “Shadow Reserves”: China’s Key to Parry U.S. Financial Sanctions appeared first on War on the Rocks.
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