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West escalates financial warfare against Russia, China: Foreign Policy

West escalates financial warfare against Russia, China: Foreign Policy
The G-7's agenda extends beyond immediate actions, hinting at future measures aimed at isolating Beijing from the global financial system.

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The G-7 has launched a new phase of financial warfare targeting Russia and China, marking a potent yet potentially perilous escalation, an analysis by columnist Michael Hirsh for Foreign Policy details. This includes action taken at the recent G-7 summit to redirect billions in frozen Russian assets to Ukraine, alongside fresh sanctions on Chinese banks. The move is seen as potentially satisfying to Russian President Vladimir Putin and Chinese President Xi Jinping, who seek to establish an alternative financial order centered on the renminbi. The G-7's maneuvers signal a departure from traditional norms in international finance, prompting concern among sovereign wealth funds, central banks, corporations, and private investors. The possibility of freezing Chinese assets in response to geopolitical crises raises concerns about systemic financial disruptions and global economic fallout. The deep economic interdependence between China and the West has deterred complete economic decoupling, complicating the imposition of broad sanctions similar to those imposed on Russia. Russian Foreign Minister Sergey Lavrov said that Washington's efforts to sustain its global dominance through political maneuvers are destined to fail, given the increasing number of countries opting for autonomous foreign policies. He noted that a growing number of countries in Eurasia, Asia-Pacific, the Middle East, Africa, and Latin America are increasingly pursuing independent foreign policy paths, which cannot be overlooked.