The View | How China’s ‘wins’ in the Ukraine war can go beyond the economy

The war in Ukraine is fought not only with satellite imaging and portable weapons, but also through smartphones, media and finance. Both Ukraine and Russia are doomed to lose in this war, with collateral economic damage spreading across the globe. The potential “winners” are the United States and China, so the war and eventual peace in Ukraine must be understood in the context of great power rivalries among Russia, the US and China.

While nothing justifies Russia’s invasion of and atrocities in Ukraine, the US and Nato are hardly innocent bystanders. Moral outrage and sanctions cannot bring peace, and this is made more difficult by contests at the regional and global levels. With strategic ramifications for both, the war in Ukraine has only heightened the competition between the US and China.

Witnessing how the West has weaponised finance and economics in this conflict, China has learned a great deal. China might be the leading manufacturing and trading nation, but the prowess of the Western-controlled global financial system is starkly demonstrated in the sanctions against Russia.

China has long sought to reduce reliance on the US dollar system. As a top priority, China must now accelerate the development of alternative international financial and trade settlement systems, such as displacing the petrodollar with the petroyuan.

China is poised to emerge as a winner in this conflict, benefiting from a weakened and isolated Russia. Reduced demand for Russian gas from Europe gives China improved bargaining power in its purchases of Russian resources. More doors to investing in Russian assets at attractive prices could open, although China might wait until after the war.