Once Russia’s use of chemical weapons is confirmed by the international community, China will be hard-pressed to avoid blame and will inevitably incur more severe sanctions. By then, it’s possible that Chinese banks will be banned from using the international SWIFT banking system. Senior officials at the White House revealed that the Biden administration is considering cutting off some Chinese banks’ access to the system.
If this happens, the impact would be unimaginable. Since its establishment in 1973, this institution based in Belgium has played the role of behind-the-scenes manipulator of global financial transactions. Today, more than 11,000 financial institutions in over 200 countries and regions are connected to the SWIFT network, processing up to 40 million transactions per day. As the world’s second-largest economy and a major trading nation, more than half of China’s foreign payments and settlements rely on the SWIFT system. It can be said that China’s economic lifeline is closely linked to this Western-dominated financial infrastructure, and the consequences of a sudden separation would be disastrous.
#chinaobserver
All rights reserved.
China Kicked out of SWIFT? This Might Be the CCP’s Greatest Financial Setback, Leaving Xi Uneasy
