China orders ‘stress test’ as sanctions fear mount

Advertisement

Several key Chinese government agencies — from banking regulation to international trade — have been asked to come up with responses if the West imposed the same embargoes on China…reports Asian Lite News

Concerned about sweeping Russia-style sanctions from the West, Beijing has ordered a comprehensive “stress test” to study the implications of a similar scenario for its economy, The Guardian reported.

According to a person with direct knowledge of the matter, an extensive exercise began around late February and early March when Western allies imposed unprecedented sanctions against Moscow after Russia’s military invasion of Ukraine.

Several key Chinese government agencies — from banking regulation to international trade — have been asked to come up with responses if the West imposed the same embargoes on China, The Guardian reported.

“Those involved in this exercise use how Russia was treated as a baseline for China’s own policy response should it be treated in a same fashion by the west. This stress test involves a range of methodology, including modelling,” the person added.

Beijing did not specify why it has asked its vast bureaucracy to carry out such an exercise, the person said.

The source said that it was a “natural reaction” from Beijing given its close relationship with Moscow.

A second source, who wished to remain anonymous, said that Chinese diplomats had in the past few weeks also been meeting experts to understand the trajectory of this conflict.

“From Beijing’s perspective, if the US-led western allies could take such measures against Moscow, they could also do the same to China. Therefore, it needs to know how resilient the country really is,” said Tong Zhao, a senior fellow at the Carnegie Endowment for International Peace based in Beijing, The Guardian reported.

ALSO READ: Anti-China sentiments on rise in Bangladesh