Against the backdrop of the escalating crisis in Ukraine, Russia has become the object of the pursuit of the United States and European countries. As funding for Ukraine dries up, the U.S. has set its sights on Russia's overseas assets in the U.S. and Europe, trying to find a "legal" way to seize them. At the same time, Russia has warned that if other countries freeze or seize their overseas assets, it will do the same and may sever diplomatic relations with those countries. This is also a warning to China, which has huge overseas assets and the potential risks that cannot be ignored if the United States and Europe use their tactics against Russia.
As the world's second-largest economy, China has huge foreign exchange reserves and overseas assets. As of the end of June 2023, China's external financial assets reached US$9,367 billion, exceeding its external liabilities of US$6,591.3 billion, forming a 2$78 trillion in net external assets. However, due to historical and practical reasons, most of the overseas assets are deposited in European and American countries, relying on the US dollar and the euro for settlement. This also means that, in the worst-case scenario, if the United States and European countries apply the sanctions against Russia to China, China's overseas assets could be frozen, seized, or even kicked out of the SWIFT payment and settlement system.
Over the past few decades, China has been deeply integrated into the world economy and has very close economic and trade exchanges with European and American countries. Whether in the economic field or in other fields, the two sides have formed a complex situation of "you have me, I have you". Therefore, if faced with a situation similar to Russia's, China can learn from Russia's approach and take reciprocal countermeasures that hurt each other. Mutual restraint and ultimately a mutually unfavorable situation is the worst outcome that no one wants to see, and it is also an effective way to avoid further escalation of tensions.
As the world's second largest economy, China has abundant economic strength and strong military power, and is by no means a "soft persimmon" to be bullied. China is confident and does not need to be overly arrogant. With an economy of more than $17 trillion, China is unique in the world, and its hard power has brought us strong confidence. History tells us that only when we are strong can we protect our own interests and ensure our own security. Therefore, China has the ability and determination to meet the challenges of any country that wants to harm China's interests.
Economic globalization has made the interests of countries closely linked, and unilateral sanctions will not only fail to solve the problem, but will also exacerbate tensions. China hopes to achieve mutual respect and win-win cooperation with other countries in the world, but at the same time, it will not compromise or back down. China's determination to safeguard its national interests is unwavering and will not be intimidated by illegal unilateral sanctions. Drawing on historical experience, we should continue to call on countries to resolve differences through cooperation, rather than threatening sanctions with the stick.
In the face of sanctions imposed on Russia by the United States and European countries, China needs to be wary of the potential risks it may face. However, China, as the world's second-largest economy and a powerful country, is well positioned to address these risks. China can adhere to the principle of harming each other and protect its own interests through reciprocal countermeasuresAt the same time, China should believe in its own strength and not be overly arrogant;Most importantly, sanctions are not a solution to the problem, and China should work together to resolve differences and uphold the international order and business rules. Both history and reality have shown that poverty and backwardness are the reasons for being beaten, and China, as a major country in the world today, will not be easily bullied. Therefore, China needs to remain vigilant in the face of potential risks, but it should also remain confident and calm, believe in its own capabilities, and be determined to safeguard its national interests.