May 7th, 2022
Communist China claims Taiwan as part of its territory despite the island nation functioning under a separate government since 1949. Chinese Communist Party continually violates Taiwan airspace, escalating deployments over the past year.
The UK and the US held top level talks on how to manage a crisis in Asia, should CCP invade Taiwan. CCP’s banking system isn’t prepared for a freeze of its dollar assets or exclusion from the Swift system as the US has done to Russia.
CCP officials are looking at ways to defend the country from economic attack if the West should look to sanction Communist China in the same way it did Russia — stoking fears the nation is preparing for an invasion of Taiwan.
Communist China’s regulators held an emergency meeting on April 22 between officials from China’s central bank, the finance ministry, domestic banks operating within China, and international lenders such as HSBC.
CCP is looking to expand the amount renminbi in circulation relative to its US-dollar holdings. One idea was to force exporting Chinese businesses to ditch their dollar holdings in exchange for renminbi.
Another suggestion was to cut to the $50,000 quota that Chinese nationals are allowed to purchase every year for overseas travel, education and other offshore purchases. Other potential solutions such as swamping some US dollar holdings for Euros were not thought to be practical.
To read about this story in length, please click here: Is China preparing to invade Taiwan? Beijing orders officials to find ways to protect the nation from western sanctions like those used against Russia
Edited by：【Himalaya London Club UK】