US financial sanctions against China ‘suicidal’ for Washington, former Chongqing mayor Huang Qifan says
- The Trump administration must issue a report to the US Congress on Monday in a follow up to July’s Hong Kong Autonomy Act
- Huang Qifan, the outspoken former mayor of Chongqing, believes that China’s economic and financial links with the US are too valuable
The United States is unlikely to launch a financial war against China as it would hurt itself more, outspoken former Chongqing mayor Huang Qifan said.
“Don’t worry, everybody. If the US really decouples from us in the financial realm, it will hurt us by 1,000 but hurt themselves by 2,000, which equals a suicidal attempt and the US will die even before we do,” Huang said in comments published at the weekend.
There are also concerns that the US may resort to broad financial sanctions against China by cutting its access to US dollars, which remains the dominant currency in international trade and payments.
Trump has no rights or authority to order Wall Street or the US business community to go against China. He just creates noises
China has three “magic weapons” to shield itself from any potential financial sanctions by the US, namely that capital flows into and out of China are highly restricted, that foreign ownership of assets in China’s financial system remains small, as well as Beijing’s extensive oversight of financial operations, Huang explained.