Beautiful Virgin Islands

Wednesday, Jan 07, 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

Beautiful Virgin Islands
0:00
0:00
Close
Béla Tarr, Visionary Hungarian Filmmaker, Dies at Seventy After Long Illness
UK and France Pledge Military Hubs Across Ukraine in Post-Ceasefire Security Plan
Prince Harry Poised to Regain UK Security Cover, Clearing Way for Family Visits
UK Junk Food Advertising Ban Faces Major Loophole Allowing Brand-Only Promotions
Maduro’s Arrest Without The Hague Tests International Law—and Trump’s Willingness to Break It
German Intelligence Secretly Intercepted Obama’s Air Force One Communications
The U.S. State Department’s account in Persian: “President Trump is a man of action. If you didn’t know it until now, now you do—do not play games with President Trump.”
Fake Mainstream Media Double Standard: Elon Musk Versus Mamdani
HSBC Leads 2026 Mortgage Rate Cuts as UK Lending Costs Ease
US Joint Chiefs Chairman Outlines How Operation Absolute Resolve Was Carried Out in Venezuela
Starmer Welcomes End of Maduro Era While Stressing International Law and UK Non-Involvement
Korean Beauty Turns Viral Skincare Into a Global Export Engine
UK Confirms Non-Involvement in U.S. Military Action Against Venezuela
UK Terror Watchdog Calls for Australian-Style Social Media Ban to Protect Teenagers
Iranian Protests Intensify as Another Revolutionary Guard Member Is Killed and Khamenei Blames the West
Delta Force Identified as Unit Behind U.S. Operation That Captured Venezuela’s President
Europe’s Luxury Sanctions Punish Russian Consumers While a Sanctions-Circumvention Industry Thrives
Berkshire’s Buffett-to-Abel Transition Tests Whether a One-Man Trust Model Can Survive as a System
Fraud in European Central Bank: Lagarde’s Hidden Pay Premium Exposes a Transparency Crisis at the European Central Bank
Trump Announces U.S. Large-Scale Strike on Venezuela, Declares President Maduro and Wife Captured
Tesla Loses EV Crown to China’s BYD After Annual Deliveries Decline in 2025
UK Manufacturing Growth Reaches 15-Month Peak as Output and Orders Improve in December
Beijing Threatened to Scrap UK–China Trade Talks After British Minister’s Taiwan Visit
Newly Released Files Reveal Tony Blair Pressured Officials Over Iraq Death Case Involving UK Soldiers
Top Stocks and Themes to Watch in 2026 as Markets Enter New Year with Fresh Momentum
No UK Curfew Ordered as Deepfake TikTok Falsely Attributes Decree to Prime Minister Starmer
Europe’s Largest Defence Groups Set to Return Nearly Five Billion Dollars to Shareholders in Twenty Twenty-Five
Abu Dhabi ‘Capital of Capital’: How Abu Dhabi Rose as a Sovereign Wealth Power
Diamonds Are Powering a New Quantum Revolution
Trump Threatens Strikes Against Iran if Nuclear Programme Is Restarted
Apple Escalates Legal Fight by Appealing £1.5 Billion UK Ruling Over App Store Fees
UK Debt Levels Sit Mid-Range Among Advanced Economies Despite Rising Pressures
UK Plans Royal Diplomacy with King Charles and Prince William to Reinvigorate Trade Talks with US
King Charles and Prince William Poised for Separate 2026 US Visits to Reinforce UK-US Trade and Diplomatic Ties
Apple Moves to Appeal UK Ruling Ordering £1.5 Billion in Customer Overcharge Damages
King Charles’s 2025 Christmas Message Tops UK Television Ratings on Christmas Day
The Battle Over the Internet Explodes: The United States Bars European Officials and Ignites a Diplomatic Crisis
Princesses Beatrice and Eugenie Join Royal Family at Sandringham Christmas Service
Fine Wine Investors Find Little Cheer in Third Year of Falls
UK Mortgage Rates Edge Lower as Bank of England Base Rate Cut Filters Through Lending Market
U.S. Supermarket Gives Customers Free Groceries for Christmas After Computer Glitch
Air India ‘Finds’ a Plane That Vanished 13 Years Ago
Caviar and Foie Gras? China Is Becoming a Luxury Food Powerhouse
Hong Kong Climbs to Second Globally in 2025 Tourism Rankings Behind Bangkok
From Sunniest Year on Record to Terror Plots and Sports Triumphs: The UK’s Defining Stories of 2025
Greta Thunberg Released on Bail After Arrest at London Pro-Palestinian Demonstration
Banksy Unveils New Winter Mural in London Amid Festive Season Excitement
UK Households Face Rising Financial Strain as Tax Increases Bite and Growth Loses Momentum
UK Government Approves Universal Studios Theme Park in Bedford Poised to Rival Disneyland Paris
UK Gambling Shares Slide as Traders Respond to Steep Tax Rises and Sector Uncertainty
×