The US authorities are in doubt. On the one hand, they were planning to impose sanctions on several Chinese banks. On the other hand, they are afraid of large-scale negative consequences for the global economy after this step. In addition, the US is not ready to complicate relations with China. In this light, it decided to delay the introduction of restrictions.
Earlier, the United States authorities discussed sanctions against some Chinese banks. In the near future, the country will hardly introduce such measures. However, the situation may change at any moment. What is more, Washington is looking for ways to influence Beijing to limit its interaction with Russia.
Nevertheless, the US is working on sanctions that could cut off some Chinese financial institutions from the global financial system. According to US officials, this will make cooperation between Beijing and Moscow more difficult.
America has previously imposed restrictions on small Chinese banks, such as Bank of Kunlun, for cooperating with Iran. However, American authorities only sometimes initiate such measures against large Chinese credit organizations. The White House fears unpredictable consequences for the global economy and US-China relations.
The US actions caused a negative reaction from the Chinese authorities. According to Chinese foreign ministry spokesman Lin Jian, China and Russia have every right to mutually beneficial economic and trade cooperation, which should not be restricted. The official emphasized that the US, Europe, and some other countries also trade with Russia. Lin Jian thinks that the parties concerned should help bring peace, not shift the blame to China.
Last week, Antony Blinken, the US secretary of state, criticized China's support for the Russian defense industry. He said Beijing had made a major contribution to the Russia-Ukraine conflict by supplying Russia with important weapons components.
In December 2023, the US Treasury Department announced the introduction of secondary sanctions targeting financial organizations that help Russia circumvent restrictions. Presumably, opening correspondent accounts in the United States will become impossible, or their use will be restricted. In addition, the property of such firms will be blocked in America. Following the introduction of these measures, payments through major Chinese banks such as the Industrial and Commercial Bank of China (ICBC), China Construction Bank (CCB), and Bank of China have become much more difficult.