US Secretary of State Antony Blinken is set to visit China next Tuesday, April 23rd, according to reports. It is said that during this trip, he will deliver the clearest warning on behalf of the Biden administration to Chinese officials that if the Chinese Communist Party (CCP) continues to provide weapons to Russia, Chinese financial institutions could face sanctions.
The UK’s Financial Times reported on Saturday, April 20th, citing sources familiar with the matter, that Blinken’s visit will serve as a warning to Beijing that Washington will take punitive measures unless China ceases to provide weapons and related technologies to Russia.
This will mark the second visit to China by a member of the Biden administration within half a month, a rare occurrence of high-level communication between the two sides.
Reports indicate that Blinken will inform his Chinese counterparts that the US and its allies find it increasingly unacceptable that Beijing refuses to cease providing Russia with materials ranging from chips to cruise missile engines, which aid in the reconstruction of Russia’s industrial base.
Several sources have suggested that Washington is considering imposing sanctions on Chinese financial institutions and other entities. One source mentioned that Blinken’s message will be the clearest warning personally delivered by the US to Chinese officials.
In recent weeks, the US has escalated warnings regarding the situation between Russia and Ukraine, including discussions with European and G7 allies.
During the G7 foreign ministers meeting in Capri, Italy, this week, the issue of collectively pressuring Beijing was discussed, with other members indicating that they have raised or will raise this issue with Beijing.
Following the G7 foreign ministers meeting, Blinken stated during a press conference that Beijing has become the primary supplier of weapons to the Russia-Ukraine conflict, providing key weapon components to Moscow.
He emphasized, “As far as Russia’s defense industrial base is concerned, its major sponsor at present is China (CCP). We see China (CCP) sharing machine tools, semiconductors, and other dual-use military-civilian products to help Russia rebuild its defense industrial base.”
“China (CCP) cannot have its cake and eat it too. It can’t afford the consequences,” Blinken explained, “You want to build a positive, friendly relationship with European countries, but at the same time, you are fueling the biggest threat to European security since the end of the Cold War.”
The US hopes to deter the CCP from continuing on its current path through punitive measures, while also urging European countries to take action. The US believes that European pressure is crucial because the CCP is concerned about the impact on its economic relationship with Europe as the economy slows down.
Since the Russian invasion two years ago, Europe has imposed sanctions on only three Chinese entities, while Washington has taken action against 100 Chinese entities.
The CCP is becoming increasingly concerned that its banks may face sanctions.
Former CIA China analyst Dennis Wilder stated on social media, “Beijing has long been concerned that the US may increase sanctions against China (CCP), especially in the banking sector, for supporting Russia during the Russia-Ukraine conflict.”
According to Russian media reports, four major Chinese banks selectively stopped receiving payments from Russia in March, particularly related to transactions involving key electronic components.
President Biden issued an executive order in December 2023 warning foreign financial institutions that “if they facilitate significant transactions related to Russian military industrial bases, they face the risk of losing access to the US financial system.”
US Treasury Secretary Janet Yellen visited China in early April. During a press conference at the US Ambassador’s residence in Beijing, she emphasized, “I stress that companies, including those in China, must not provide material support to Russia for the war in Ukraine… If they do, they will face severe consequences.”
She stated, “Any bank engaged in facilitating significant transactions that transport military or dual-use goods to Russian defense industrial bases will face the risk of US sanctions.”
While the CCP has been a target of past warnings, Yellen’s message in Beijing is seen as unusual.
Just as Yellen issued this warning and prior to her departure, Russian Foreign Minister Lavrov arrived in Beijing to discuss issues such as Ukraine with Chinese officials.
Despite claiming neutrality in the Russia-Ukraine conflict, China’s trade with Russia has surged since the war began.
Three weeks ago, President Biden spoke with Chinese leader Xi Jinping over the phone.
US officials recently disclosed a technology list sent from Beijing to Russia. By 2023, 90% of the chips imported by Russia come from China and are used in the production of missiles, tanks, and planes; in the fourth quarter of 2023, 70% of Russia’s machine tool imports come from China, potentially used for manufacturing ballistic missiles.
Additional background for Blinken’s visit to China includes Congress passing several bills, including providing military assistance to Taiwan and requiring Chinese companies to divest from TikTok.
The US State Department declined to comment.