Chinese banks have to admit harsh realities. In the context of tightening Western sanctions against Russia, policymakers from the Group of Seven (G7) will issue a stern warning to particular banks. This statement is planned to be made at the summit in Italy scheduled for June 13-15. The event will also include closed-door discussions about the large-scale expansion of Sino-Russian trade.
An American official involved in planning the summit, along with other informed sources, stated that the G7—which includes the US, the UK, Canada, France, Germany, Italy, and Japan—will consider how small Chinese financial institutions might be helping Russia circumvent sanctions.
The summit is expected to proceed in a calm atmosphere, with no immediate serious measures being taken. These actions include cutting off Chinese banks from the international SWIFT payment system or access to the US dollar. Instead, European leaders will focus on issuing a warning, mainly targeting smaller Chinese banks.
The US Treasury Department did not comment on this information. However, the department had previously cautioned financial institutions in Europe, China, and other countries about the consequences of helping Russia bypass sanctions. According to Daleep Singh, the Deputy National Security Advisor for International Economics in Biden’s administration, Washington is concerned about China's increasing role in supporting the Russian economy, which has now become a "factory for the Russian war machine."
