China is gearing up to protect its massive economy from the possibility of Western sanctions, much like those that have hit Russia since its conflict with Ukraine. In case tensions with the West over Taiwan escalate, Beijing wants to ensure its financial systems, trade, and supply chains stay strong. To do this, it is taking notes from how Russia has dealt with economic restrictions, studying its strategies and figuring out what could work for a much larger, globally-connected economy like China’s.
This move shows just how serious China is about avoiding the economic chaos that sanctions could bring. It has even created a special team to carefully analyze Russia’s experience and apply those lessons to its own situation.
Learning From Russia’s Playbook
When Western countries imposed harsh sanctions on Russia, it had to find ways to keep its economy running. China is now studying these methods in detail. For example, Russia made sure its foreign reserves—a huge pile of money saved for emergencies—weren’t all kept in U.S. dollars or in places that could be frozen by Western governments. Instead, Russia diversified where and how it stored its money.
China is now looking at ways to protect its own foreign reserves, which total a whopping $3.3 trillion. This is one of the largest reserves in the world. If sanctions froze even a part of this money, it could cause big problems. By studying Russia’s actions, China hopes to prevent this from happening.
Russia also used creative tactics to sell its oil and gas despite Western restrictions. For instance, it relied on “shadow fleets” of ships—vessels that avoided detection—to keep its exports flowing. China is exploring similar methods to ensure that, even under sanctions, its trade routes remain open.
Building Strength From Within
Another lesson taken from Russia is the importance of producing more at home. When Western countries cut Russia off from importing certain goods, Russia quickly increased its domestic production. This helped reduce its dependence on foreign-made items, especially those from countries imposing sanctions.
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China already makes a lot of its own products, but it still relies on other countries for things like advanced computer chips and certain kinds of machinery. If sanctions were to block these imports, it could cause major disruptions. That’s why it is now focusing on bolstering its supply chains and finding alternatives to foreign-made goods.
This also applies to energy and food. While China is not as dependent on energy imports as some other countries, it is looking to ensure its energy and food supplies remain secure, even if it faces restrictions.
Strengthening Trade and Partnerships
Trade is another area where China is following Russia’s example. After Western sanctions hit Russia, it leaned heavily on its trade partnerships with countries like India, and others that didn’t join the sanctions. This allowed Russia to keep its economy afloat.
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China already trades extensively with Russia, but the relationship is a bit unequal. It has the upper hand because it is much larger and more economically powerful. Still, by studying how Russia has maintained its global trade, it is looking to expand its partnerships with other countries.
One tactic is exploring alternate trade routes and payment systems. For instance, Russia avoided Western financial systems by developing its own ways of processing payments. China is building its own financial tools, like a digital currency, to reduce its dependence on systems controlled by Western nations. This would make it harder for sanctions to cut it off from global trade.
China’s preparations show a careful and determined effort to shield its economy from any potential trouble ahead. While it isn’t clear whether sanctions are coming, the steps being taken reveal how much China has learned from watching Russia’s experience. By diversifying its financial resources, boosting domestic production, and expanding its trade relationships, it aims to stay ahead of any economic restrictions that could come its way.
