Calls to use Russia’s frozen assets to fund Ukraine’s war effort are growing but such a move might set a dangerous internationally legal precedent. A multilateral framework that governs the use of sanctions can help assure countries that their assets would not be frozen on flimsy grounds.
Nowadays China seems less interested in multilateral engagement more broadly. However, the world cannot end the pandemic, address the climate crisis or ease the energy-supply emergency without China’s active and positive contribution to the G20.
The reported US plan to target China in a financial war, if put in motion, would be the latest Trump move to leverage the US dollar’s privileged position to advance geopolitical objectives. It would deepen mistrust of the US and hasten the search for an alternative financial system.
It’s clear why Italy, in need of an economic jump-start, would warm to China, but just as clear why engaging China bilaterally is not a good idea.
The complexity of dealing with the devaluation of the renminbi amid the trade war underlines the need for China to allow the value of its currency to be truly determined by market forces.
