Daily Market Updates: China builds alternatives to reduce exposure to U.S. sanctions risk

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China builds alternatives to reduce exposure to U.S. sanctions risk

Reported · Written up by our desk · Economy

CNBC reports that Washington has leverage over Chinese banks because U.S. access to the financial system can be used to pressure transactions involving Iran, raising the risk of sanctions spillover.

The outlet says China is responding by building hedges to limit dependency and keep cross-border payment routes working despite potential U.S. restrictions.

One alternative cited is CIPS, a China-based system intended to provide an additional path for settlements and reduce reliance on channels vulnerable to U.S. measures.

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Sources

CNBC MarketsChina needs U.S. dollars but is building a hedge against Washington’s sanctions

CNBC WorldChina needs U.S. dollars but is building a hedge against Washington’s sanctions

CNBC EconomyChina needs U.S. dollars but is building a hedge against Washington’s sanctions

CNBC FinanceChina needs U.S. dollars but is building a hedge against Washington’s sanctions

Bonds & Rates

China builds alternatives to reduce exposure to U.S. sanctions risk

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