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China considers a plan to protect overseas assets

China calculates a plan to protect assets abroad - Photo 1.

HSBC Hong Kong headquarters – Photo: CNN

According to the newspaper Financial TimesChinese officials recently held an emergency meeting with domestic and foreign banks to discuss how the state can protect its assets.

This is China’s economic defense move, in the context of China’s concern that the US may impose economic sanctions like Russia.

The meeting included officials from the Central Bank and the Ministry of Finance of China. In addition, there are executives from dozens of domestic and international lending companies such as HSBC and representatives of other domestic banks.

A source told the newspaper Financial Times: “If China is sanctioned, the decoupling of the Chinese and Western economies will be much more severe than that of Russia. Because China’s economic footprint touches every corner of the world.”

China and Russia are working on an alternative to the SWIFT international payment system. The two countries are strengthening their international payment systems, including the Russian Financial Information System (SPFS) and the China Cross-Border Interbank Payment System (CIPS).

According to the newspaper South China Morning PostChina has $3.2 trillion in foreign exchange reserves.

Newspaper Financial Timess said senior managers including Mr. Yi Huiman, chairman of China Securities Regulatory Commission (CSRC) and Mr. Xiao Gang – former head of CSRC from 2013 to 2016 – asked bank executives about how they can protect their offshore assets.

Mr. Douglas H. Paal, a scholar at the Carnegie Endowment for International Peace, told Insider: “China is very concerned about sanctions against Russia”.

Comment with the page InsiderAndrew Collier, executive director of the Orient Capital Research Institute in Hong Kong, said the Chinese government was right to be concerned. Because they have few alternatives and the consequences “American financial sanctions are dire”.

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