Arab Press

بالشعب و للشعب
Friday, Apr 10, 2026

Beijing orders ‘stress test’ as fears of Russia-style sanctions mount

Beijing orders ‘stress test’ as fears of Russia-style sanctions mount

Exclusive: exercises are to prepare China for the possibility of similar embargos from the US and its allies

Concerned about sweeping Russia-style sanctions from the west, Beijing has ordered a comprehensive “stress test” to study the implications of a similar scenario for its economy, the Guardian has learned.

According to a person with direct knowledge of the matter, an extensive exercise began around late February and early March when western allies imposed unprecedented sanctions against Moscow. Several key Chinese government agencies – from banking regulation to international trade – have been asked to come up with responses if the west imposed the same embargos on to China.

“Those involved in this exercise use how Russia was treated as a baseline for China’s own policy response should it be treated in a same fashion by the west,” the person added. “This stress test involves a range of methodology, including modelling.”

Beijing did not specify why it had asked its vast bureaucracy to carry out such an exercise, the person said. They said that it was a “natural reaction” from Beijing given its close relationship with Moscow. A second source, who wishes to remain anonymous, said that Chinese diplomats had in the past few weeks also been meeting experts to understand the trajectory of this conflict.

“From Beijing’s perspective, if the US-led western allies could take such measures against Moscow, they could also do the same to China. Therefore, it needs to know how resilient the country really is,” said Tong Zhao, a senior fellow at the Carnegie Endowment for International Peace based in Beijing.

But Edward Fishman, a former adviser to John Kerry on economic sanctions at the US state department, said that no economy – not even China – was immune to the types of financial sanctions that the west has wielded against Russia. “There is no good alternative to the western financial system, and that’s likely to remain the case for a long time,” he said.

“The future of economic conflict between the west and China, therefore, will likely be narrower in scope than what we’ve seen from the west in recent months against Russia. It will centre on jockeying for leverage in strategic areas – such as frontier technologies and next-generation infrastructure – not on trying to produce broad-based economic disruption.”

Zhao said that the current exercise by Beijing could be an attempt to understand what the short-term cost to China would be if it provided material support to Russia over the course of this conflict. US officials this week said they had not yet seen military and economic support for Russia from China, despite earlier warnings of the possibility.

On 22 April, officials from China’s finance ministry and the central bank held a meeting with domestic and foreign banks, including HSBC, to discuss how they could protect China’s overseas assets should Russia-style sanctions led by the US and its western allies also be imposed, according to a recent report by the Financial Times.

Chinese analysts were caught off-guard by Russia’s invasion of Ukraine on 24 February, several personnel said. But the western response, according to Zhao, was “more surprising to the Beijing leadership initially”.

“For the past few years, there’s been a growing concern among Beijing’s leadership that a strategic conflict between China and the west may not be a question of whether it’d happen, but when it will happen, in particular over the issue of Taiwan.”

Beijing has strongly opposed any link to Taiwan when discussing the war in Ukraine, insisting they are two separate matters. Last week, the Chinese embassy in London again criticised British media’s comparison of the two, saying the Taiwan issue “bears on China’s core interests and we will brook no external interference”.

The information office of China’s state council has been contacted by the Guardian for comments.


‘Security guarantee’


China’s foreign ministry in the past week stepped up its rhetorical support for Russia, saying that the two sides “rise above the model of military and political alliance in the cold war era”, and that the two countries “commit themselves to developing a new model of international relations”.

Curiously, around the same time, Ukraine’s foreign minister, Dmytro Kuleba, told the official Xinhua news agency that Kyiv was keen to involve Beijing in ensuring its security. “We propose that China becomes one of the guarantors of Ukraine’s security, this is a sign of our respect and trust in the People’s Republic of China,” he said on Saturday.

In 2013, China agreed to provide Ukraine with “security guarantees” if it is invaded or threatened with nuclear attack. But critics say Beijing remained evasive on the same issue after Russia’s invasion in February.

Kuleba also told Xinhua that European countries are concerned about the situation because they could not guarantee Russia would not invade them tomorrow. “We also believe that this war is not in China’s interests,” he said, adding: “If Russia is not stopped now, it will lead to more crises a few years later.”

Newsletter

Related Articles

Arab Press
0:00
0:00
Close
Gulf States Assess Prospects of U.S.-Iran Truce as Regional Stability Efforts Intensify
South Korea Resumes Honey Exports to Saudi Arabia Following Sanitary Approval
Saudi Arabia Carries Out Sentences in Eastern Province Following Security Convictions
Saudi Sovereign Wealth Fund Backs King Street’s Regional Credit Strategy
Saudi Arabia Secures World Cup Return as Egypt Celebrates Landmark Qualification
Iran and Saudi Arabia Intensify Diplomatic Engagement Amid Regional Tensions
Russia and Saudi Arabia Open Visa-Free Travel Corridor for Citizens
Saudi Oil Output Capacity Reduced by 600,000 Barrels Per Day Amid Regional Conflict
Saudi Arabia Suspends Operations at Select Energy Sites as Precautionary Measure
Saudi Arabia Halts Operations at Multiple Energy Facilities Amid Heightened Tensions
Global Markets Jolt as Iran Signals Ceasefire Breakdown and Rising Regional Tensions
King Street Aligns with Saudi Sovereign Wealth Fund to Expand Alternative Investments in Middle East
Attack on Saudi Arabia’s Jubail Petrochemical Hub Raises Global Supply Concerns
Debate Emerges Over Saudi Strategic Decisions as Gulf Cooperation Council Dynamics Come Into Focus
Saudi Arabia Expands Full Workforce Localisation to 69 Professions in Major Labour Reform
Emerging Alliance of Pakistan, Turkey, Egypt and Saudi Arabia Signals New Regional Power Dynamic Amid Iran Conflict
Iran Linked to Strikes Across Gulf States Following Refinery Attack Escalation
Saudi Arabia Voices Concern Over Fragile US–Iran Ceasefire Stability
Starmer Warns Sustained Effort Needed to Ensure US–Iran Ceasefire Holds
Saudi Arabia’s Key East-West Oil Pipeline Targeted Following Ceasefire Announcement
Iran Targets Saudi Arabia’s East-West Oil Pipeline in Escalating Regional Tensions
Trump Warns of Civilizational Stakes as Iran Halts Negotiations
Saudi Companies Expand Remote Work Measures Ahead of Iran-Related Security Concerns
Iran Warns of Strikes on Saudi Energy Infrastructure if US Targets Its Facilities
Iran Urges Civilians to Form Human Shields Around Nuclear Sites as Diplomatic Deadline Approaches
Saudi Arabia Raises Oil Prices to Record Premiums Amid Supply Pressures Linked to Iran Conflict
Key Saudi-Bahrain Causeway Closed Amid Heightened Security Concerns Linked to Iran
Formula One Calendar Gap Explained as Fans Await Next Grand Prix
Growing Strain on the Petrodollar System Comes Into Focus Amid Iran Conflict
Reported Strike on Saudi Arabia’s Jubail Complex Raises Global Energy Supply Concerns
FedEx Introduces New Digital Tool to Streamline Imports into Saudi Arabia
Iran Claims Strike on Saudi Arabia’s Jubail Petrochemical Complex Amid Rising Regional Tensions
Taiwan to Source Oil Shipments from Saudi Arabia’s Red Sea Ports
Saudi Arabia Evacuates Riyadh Financial District as Precaution Amid Regional Tensions
Saudi Arabia Balances Ambitious Economic Vision Amid Regional Tensions and Financial Pressures
Budget Saudi Arabia Reports Strong Full-Year 2025 Financial Performance
Saudi Arabia Expands Investment in Capcom With Stake Reaching Six Percent
Saudi Arabia Assesses Significant Economic Impact From Regional Conflict Involving Iran
US Beef Secures Expanded Market Access in Saudi Arabia
Jordan and Saudi Arabia Declare Absolute Solidarity in Response to Iranian Threats
Saudi Arabia Raises Oil Prices to Record Premium Amid Strong Market Demand
California’s Salton Sea Emerges as Strategic Lithium Hub for Clean Energy Future
Iranian Drone Strike on US Embassy in Saudi Arabia Reportedly Targeted Intelligence Facility
Saudi Deputy Foreign Minister Meets French Embassy Official to Strengthen Bilateral Engagement
Saudi Arabia Calls on United States to Seize Strategic Opportunity to Reshape Middle East
Dating Apps Surge in Saudi Arabia as Social Norms Rapidly Evolve Among Youth
Saudi Arabia Detains Over Fourteen Thousand Illegal Residents in Week-Long Enforcement Drive
Saudi Foreign Minister Engages in Diplomatic Talks with Pakistan, Kuwait and Latvia on Regional Developments
Saudi Arabia Intercepts Cruise Missile as Regional Tensions Intensify
Saudi Stock Market Edges Higher as Tadawul Index Records Modest Gain
×