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Headquarters of the People's Bank of China (PBOC), the central bank, is pictured in Beijing on Dec. 13, 2021. (Andrea Verdelli/Bloomberg via Getty Images)MORE
THINKING ABOUT CHINA
China Sells Western Currency and Oil Assets to Avoid Sanctions
The CCP decouples from the West

Anders Corr
April 15, 2022 Updated: April 21, 2022
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News Analysis

China is shifting its global asset portfolio in response to sanctions on Russia and is in the process of stabbing the West in the back.

Having seen the avalanche of economic pain imposed by the West on Russia—from the confiscation of oligarch yachts to the freezing of most of Moscow’s $630 billion in foreign currency reserves—Beijing is moving to protect itself, presumably because it knows it’s up to no good and could therefore be sanctioned in the future.

China’s central bank had $3.22 trillion in foreign currency reserves and $1.12 trillion in gold reserves in January, according to its own data. It now realizes that much of this, which is in the world’s hardest currencies—the U.S. dollar, euro, Japanese yen, and British pound sterling—are vulnerable to freezing if, for example, China continues to support Russia or invades Taiwan.

By March, China’s currency reserves fell to $3.19 trillion, and its gold reserves rose to $1.22 trillion. In other words, China is selling its Western currencies for gold. This could be a fractional rebalancing or the beginning of a larger trend.

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China’s likely dumping of Western currencies could be adding to inflationary pressures in the West, which increased to 8.5 percent for the dollar in March, compared with a year ago, on the back of rising energy and food costs from Russia’s invasion. U.S. inflation, the Federal Reserve target for which is 2 percent, is currently at its highest since the 1980s.

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In March, eurozone and British inflation were also high at 7.5 percent and 7 percent, respectively. Meanwhile, in China, inflation is relatively moderate at 1.5 percent.

Beijing knows that its global asset portfolio, including oil fields in the West, could be seized if it follows Moscow’s example and does the wrong thing. Rather than protect all these investments by doing the right thing, the Chinese Communist Party (CCP) is preparing for bad behavior by liquidating its vulnerable Western assets and rebalancing its portfolio toward countries with which it has more influence, such as in the developing world and among dictatorships.

According to a new Reuters report, China is selling its oil fields in the United States, Canada, and Britain due to the threat of sanctions. CNOOC, China’s leading offshore hydrocarbon producer, seeks to unravel its $15 billion investment in Canada’s Nexen, which produces approximately 220,000 barrels per day in the North Sea, Gulf of Mexico, and Canada’s oil sands.


The headquarters building of China National Offshore Oil Corporation (CNOOC) in Beijing on July 29, 2016. (STR/AFP via Getty Images)
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While CNOOC was delisted on U.S. stock exchanges in October due to its alleged military owners, it’s reportedly planning to relist on the Shanghai stock exchange.

Since the Trump administration, the CCP has faced increasing headwinds over its unethical trade practices and human rights abuse. The timing of CNOOC’s asset sale appears to be linked to a rise in oil and gas prices that resulted from Russia’s invasion of Ukraine, and which could garner a higher price than it paid.

Beijing still seeks to source hydrocarbons internationally and, to that end, wants to acquire alternatives in places s

Beijing still seeks to source hydrocarbons internationally and, to that end, wants to acquire alternatives in places such as Brazil, Guyana, Uganda, and Iraq.

According to a new report by oil analyst Simon Watkins, the United States recently gave Iraq an unprecedentedly long waiver from Iran sanctions. Just after, Iraq returned the favor by giving China a massive hydrocarbon deal of “an engineering, procurement, and construction contract worth at least US$412 million for a 130 million standard cubic feet per day natural gas processing facility in Basra.”

A new aversion to Western assets, including currencies and alternatives such as oil fields, could have major ramifications for China’s trade with the West. If China no longer wants what America, Europe, and Japan have to offer, then Beijing might reorient away from supplying these regions with manufactured goods, which would accelerate decoupling.

But before China decouples from the West and our allies, we should jointly decouple from Beijing. Let the CCP pay the cost of its support for Russia, human rights abuse, territorial aggression, intellectual property theft, and foisting of COVID-19 on the world, not us. That means taking the economic initiative against the CCP and its global assets. There are plenty of justifications to do so.

Views expressed in this article are the opinions of the author and do not necessarily reflect the views of The Epoch Times.

https://m.theepochtimes.com/china-sells-western-currency-and-oil-assets-to-avoid-sanctions_4406675.html?fbclid=IwAR3DkMkJfusAFVoWngEmCEeF5oVl60DKVtbuaR_l_9iND8qUpmzwwkDeluI

https://www.wsj.com/articles/fearful-of-getting-cut-off-china-pushes-for-self-reliance-11651588187?mod=e2fb&fbclid=IwAR1SVSkHM18un5YmC-Gwsx6jUZle0ppm2j_wm3KpM4ioHNKX9eVU1g8DsSg


Fearful of Getting Cut Off, China Pushes for Self-Reliance
Its much larger economy is more difficult to cut off than Russia’s but that doesn’t make it bulletproof
Related Video
In February, Russia’s President Vladimir Putin and China’s Xi Jinping declared that their friendship had no limits. Now, the war in Ukraine is testing that relationship. WSJ’s Shelby Holliday explores how the war in Ukraine is weighing on Beijing. Photo: Associated Press
By James T. Areddy
Updated May. 3, 2022 12:49 pm ET

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TEXT
Like his predecessors who built the Great Wall to thwart foreign threats, Chinese leader Xi Jinping is raising ramparts to make his nation more self-reliant, a mission Russia’s war in Ukraine has made more imperative.

China has pumped billions of dollars into semiconductor production, stockpiled grains and oil, and established international links to its financial system. At the root of the push is the fear of getting blocked out of Western economies by heavy penalties of the sort the U.S. and European Union have thrust at Russia.

TO READ THE FULL STORY

No wise nation wants to keep their money in USA again.


USA is finally going down.


God bless putin.
God bless mother Russia.

the west can sanction russia. But who santioned them when they went to Iraq, Afghanistan and Libya to fight fake wars nice one china

Many countries will begin to leave USA banks and Wall Street, they will gently sell off their bonds, shares, stocks whatever can be sanctioned off.

The human spirit was not created to be subdued by any foolish race that thinks they own the world.

Betscoreodds:
No wise nation wants to keep their money in USA again.


USA is finally going down.


God bless putin.
God bless mother Russia.

If dem no go down
Go pull dem down with that yeye rope you take
Hang cloth inside your room

Reaction from a country that values her economy...

Betscoreodds:
Many countries will begin to leave USA they will gently sell off their bonds, shares, stocks whatever can be sanctioned off.

The human spirit was not created to be subdued by any foolish race that thinks they own the world.

Human Race has always been destined to be ruled by more superior beings of its type.
China can't survive without the European and American market
The US would rather find them a place to spend their money,,,, War, and definitely not with the Americans but the Taiwanese or Indians
U.S is depleting the Russian army presently through Ukraine
After spending 20yrs in the middle east they are re arming with modern tech and they must keep the enemies busy.
Russia pushed back hitler through American Supplies, maybe putin refused to read that part of history
Life is after all a game
And Americans has the altimate game cheats

richeeyo:

Human Race has always been destined to be ruled by more superior beings of its type.
China can't survive without the European and American market
The US would rather find them a place to spend their money,,,, War, and definitely not with the Americans but the Taiwanese or Indians
U.S is depleting the Russian army presently through Ukraine
After spending 20yrs in the middle east they are re arming with modern tech and they must keep the enemies busy.
Russia pushed back hitler through American Supplies, maybe putin refused to read that part of history
Life is after all a game
And Americans has the altimate game cheats

Bro, it is the Ukrainian military that is feeling the brunt of this conflict. I am not saying this to denigrate those soldiers but they have little left to fall back on. The cries of no-fly zone and what-not are to make up an excuse for the imminent failures. Russia is not to be joked with.

Till today Europe still draws gas supplies from Russia despite all the sanctions and information wars. They cannot afford to freeze to death. I really dislike the Ukrainian leadership for letting this conflict degenerate so badly.

Betscoreodds:
No wise nation wants to keep their money in USA again.


USA is finally going down.


God bless putin.
God bless mother Russia.

What do you know? Do you even understand the thread at all. Swine!

Lol.
China is wise.
The only thing I like about them

I Guess This Russia-Ukrain conflict exposes a big loophole in the global political and economic system.
Western Nations just dealt their ultimate card, which everyone realised this is a great mistake. Let's hope the house of cards never come down finish.

This isn't going the way many of you think.This may be a calculated plan by the U.S.It's difficult to be self-reliant economically.China will only cripple its economy moving away from the west.

VictorUSA:
This isn't going the way many of you think.This may be a calculated plan by the U.S.It's difficult to be self-reliant economically.China will only cripple its economy moving away from the west.

the way you worship west only God can help you.

West is nothing thier own product is expensive you know they only bring nato death.

It all started with a deal between US companies and the Ukrainian government, according to which the Ukrainian government provided the land of eastern Ukraine to the US to drill for shale gas.

For this purpose, however, they had to evict about 5 million Russians from Donetsk and Donbas and follow them to Bleep, so as not to interfere with the production of shale gas.
But the Russians stumbled and did not want to leave their homes (especially since no one would pay them the cost of their homes and furniture) and rebelled.

The Ukrainian army was ambitious and began to re-educate them in its own way.
First he fired at them from tanks, then from GRAD installations, and finally he started bombing them with phosphorus and cluster bombs with SU 25 planes. About 37,000 people have been killed and wounded so far, of which at least 500 are children.

From time to time the Russians handed them some weapons so that they could defend themselves, and that was it. And so until the intelligence of Russia came the information that February 2022 tg. the entire Ukrainian army will attack Donetsk and Luhansk to appease them.

That is why the Russians had landed about 100,000 armies near their border (a little more army was concentrated in Ukraine not far away, but no one mentions it). And after no one attacked until February 17, Russia began to withdraw its troops on February 18. Yes, but on February 21, Ukraine began bombing Donetsk and Luhansk, registering more than 1,400 explosions.

And on February 24, the Russian army regrouped and entered Donetsk and Luhansk.
These are the facts. I could only add that Ukraine turned out to have developed its own atomic bomb and it took them a month or two to complete it.
Nuclear weapons specialists Ukraine has, like plutonium, the nuclear fuel used by nuclear power plants. In addition, 74 US bases and 26 biological weapons laboratories.

So you judge for yourself who attacked whom first and whether
Putin has not prevented a biological and nuclear catastrophe in the region!

richeeyo:

If dem no go down
Go pull dem down with that yeye rope you take
Hang cloth inside your room

can't see any rope in my room lol.

Betscoreodds:
the way you worship west only God can help you.

West is nothing thier own product is expensive you know they only bring nato death.

The way you hate the West only God can help you.

ednut1:
the west can sanction russia. But who santioned them when they went to Iraq, Afghanistan and Libya to fight fake wars nice one china

wetin u wan use sanction US?

Betscoreodds:
can't see any rope in my room lol.

... Lol

alphaNomega:
Bro, it is the Ukrainian military that is feeling the brunt of this conflict. I am not saying this to denigrate those soldiers but they have little left to fall back on. The cries of no-fly zone and what-not are to make up an excuse for the imminent failures. Russia is not to be joked with.

Till today Europe still draws gas supplies from Russia despite all the sanctions and information wars. They cannot afford to freeze to death. I really dislike the Ukrainian leadership for letting this conflict degenerate so badly.

You are totally wrong
Russian military as taken more lost , it's the first of such in the 21st century.
While Ukraine has taken more civilian lost than military,
Their no fly zone demands
Is been imported to them
To be implemented by them and not nato
Russia can't take on Nato
With its girls scout army

VictorUSA:
This isn't going the way many of you think.This may be a calculated plan by the U.S.It's difficult to be self-reliant economically.China will only cripple its economy moving away from the west.

You go just carry dey talk


China economy crashing will send the whole world to economy doom

As we speak the world can't literally do without china

richeeyo:

Human Race has always been destined to be ruled by more superior beings of its type.
China can't survive without the European and American market
The US would rather find them a place to spend their money,,,, War, and definitely not with the Americans but the Taiwanese or Indians
U.S is depleting the Russian army presently through Ukraine
After spending 20yrs in the middle east they are re arming with modern tech and they must keep the enemies busy.
Russia pushed back hitler through American Supplies, maybe putin refused to read that part of history
Life is after all a game
And Americans has the altimate game cheats

depleting fire. Russia that fielded around 11% of their military capability. If anything, it is Russia that is depleting NATO stockpile. Nato supply expensive weapons to Ukraine, Russia wait till they get to military warehouse and then blow them up with missiles. That's why no matter what USA sends zelensky is always crying for more weapons.
If anything, this suits Russia just fine. Ukraine don't have relevant air defence so it is very easy for Russia to blow up NATO weapons in Ukraine something that would be way more difficult inside, say, Poland or Turkey.
Russia is NATO enemy, every NATO weapon was manufactured with Russia in mind so Russia would be way way happier to blow the weapons up while undefended in Ukraine than in Poland

VictorUSA:
The way you hate the West only God can help you.

some people here out of their love for anything America, have refused to see that America is the number one bully in the whole world. I love America too, and I will prefer them to remain powerful, but not with absolute power. Because absolute power currupts.. If anyone think America is fighting for Ukraine, they are deceiving themselves. America is fighting to destroy the only country, that's preventing them from having absolute power. The military might of Russia is of great concern. America practice democracy at home, but on the international stage, they practice dictatorship. They have little or no respect for the UN, they have even threatened the UN and its affiliates on numerous occasions. America respects sovereignty of a nation, for as long as the nation is serving their interests. Once you fall out of line, and you refuse to fall back in line...... Forget it. A unipolar world is dangerous for everyone of us.... USA must learn how to share the world with Russia and china

GODPUNISHALABI:
wetin u wan use sanction US?

by each nation pulling out their reserves from USA then watch USA collapse.

richeeyo:

You are totally wrong
Russian military as taken more lost , it's the first of such in the 21st century.
While Ukraine has taken more civilian lost than military,
Their no fly zone demands
Is been imported to them
To be implemented by them and not nato
Russia can't take on Nato
With its girls scout army

Ukraine military has been destroyed you need to watch lord of War in telegram.

richeeyo:

You are totally wrong
Russian military as taken more lost , it's the first of such in the 21st century.
While Ukraine has taken more civilian lost than military,
Their no fly zone demands
Is been imported to them
To be implemented by them and not nato
Russia can't take on Nato
With its girls scout army

lmao. Ukraine that's now on fourth stage mobilisation?
The stage Ukraine is now means if you were a Ukrainian you will be bundled out of your home and given a weapon to go and fight. The simple reason is because they're running out of regular troops. Russia strike bases with missiles killing 300 + soldiers regularly. The best Ukraine do is ambush a Russian group killing 10 to 15 Russians, they snap it and upload on Twitter so that you can clap

primestreams:

You go just carry dey talk


China economy crashing will send the whole world to economy doom

As we speak the world can't literally do without china

exactly.

Betscoreodds:
by each nation pulling out their reserves from USA then watch USA collapse.

Lol joker

GODPUNISHALABI:
Lol joker

I said the truth and many examples abound from the scripture to prove it.

primestreams:

You go just carry dey talk


China economy crashing will send the whole world to economy doom

As we speak the world can't literally do without china

Is this because of the imaginary world factory in China? The world can do better without china.China stormed into the emerging top economies scene sometimes in 70s or 80s, before then, who was the world relying on?

Bestscoreodds I actually agree with all your positions.But there's something i want you to get.The US is always concerned with the security of the world.They don't sell weapons to terrorists or terrorists breeding countries.Russia and China on the other hand sells weapons to anyone not minding who they are.Recalled when they sold weapons to taliban and it was leaked.The US must possess absolute power to halt the progress of comunists like Xi and dictators like Putin.

VictorUSA:
Bestscoreodds I actually agree with all your positions.But there's something i want you to get.The US is always concerned with the security of the world.They don't sell weapons to terrorists or terrorists breeding countries.Russia and China on the other hand sells weapons to anyone not minding who they are.Recalled when they sold weapons to taliban and it was leaked.The US must possess absolute power to halt the progress of comunists like Xi and dictators like Putin.

Funny your analogy to back them holds no water the USA deep state or system still controls the president that why they fought against trump tooth and nail the deep state or system is more dictatorial than putin and Xi.

Mind you who sold weapons to Libya terrorists groups to over throw Gaddafi or who sold it to isis to try to over throw Assad...

It was all USA and nato that sold it to them.

Wake up my brother and smell the coffee.


USA is a snake they don't mean well for you.