US to take aim at Chinese banks aiding Russia war effort: Report
Chinese banks off the global financial system, in the hopes of stopping Beijing's commercial support of Russia's military production, the Wall Street Journal reported on Monday, citing people familiar with the matter.
With Secretary of State Antony Blinken due to visit China this week, it remains to be seen whether this financial threat will dent the China-Russia trade enabling Moscow to rebuild its military after losses in Ukraine, the report said.
Blinken on Friday criticized Chinese support for Russia's defence industry, saying Beijing was the key contributor to Moscow's war in Ukraine through its provision of critical components for weaponry.
In recent weeks, U.S. officials have intensified pressure on China, warning that Washington was ready to take action against Chinese financial institutions facilitating trade in goods with dual civilian and military applications.
U.S. officials said targeting banks with sanctions was an escalatory option in case diplomatic overtures fail to persuade Beijing to curb exports, the report said.
Cutting banks off from access to the dollar — used in much of global trade — is often reserved as a last resort, as such sanctions often force banks into failure.
It would also represent a particular risk for China, amid a sputtering economic recovery and growing debt.
'GROUNDLESS ACCUSATIONS'
A spokesperson for China's foreign ministry on Tuesday said China was «firmly opposed» to the U.S. making «groundless accusations» about normal trade exchanges with Russia.
«We are firmly
