The current war in Ukraine has opened a lot of world leaders’ eyes to what might happen to them if they should disobey the law of the west. Sanctions are not anything new, the scale at which it is now being used against Russia is unprecedented.
Russia is now the most sanctioned country in the world and is slowly decoupling from the western system. At the moment it seems as if the transition is irreversible.
Another country that has been watching closely and analyzing the situation in China. China is another country that is an enemy of the west and a country that the United States deems its number 1 threat.
Before the war started China has been finding ways to not slowly decouple from the west as they are seeing a correlation between China’s growth and the growing hostilities from the west.
As a result, just like Russia and other countries such as Iran, Cuba, Venezuela, and others. They are now being forced to be more self-reliant which is a good thing.
In March, they ended an economic simulation that started in February to see how best the country could withstand sanctions if they make a move on Taiwan. After Russia, they know that they are next on the naughty list, and they have to get their house in order when that happens.
Recently, top Chinese officials have been ordered to not hold western assets as it poses a unique risk to withstand sanctions if they would clash with the United States.
Seeing what happened to Russia and its officials, CCP (Chinese Communist Party) ensures that they keep all the taps covered in case something drastic happens in the coming months or years.
Currently, despite the sanctions against Russia, they are managing it well. The paper economy of the west has been falling and asset-backed economies that have real commodities on their balance are holding up comfortably.
China can take a page or two from Russia’s book and given the close relationship they have, I am assuming they had already.
