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China’s XI Warns That The West Is Weaponizing The Economy With Sanctions
Russia and the United States are not the only two great powers who have taken up the cry of weaponizing finance. Chairman Xi has noticed also.
In a video address to the BRICS summit in Beijing last week, Xi said that the West was responsible for the War in Ukraine because it has antagonized Russia since 2008 and provoked the invasion by refusing reasonable demands that Ukraine not join NATO. Xi’s suggested response was that the BRICS (Brazil, Russia, India, China and South Africa) and associated nations invited to the summit (including Argentina and Iran) should develop their own trading and infrastructure investment networks that do not rely on the U.S. or EU for support.
Xi also wants to create a formal process to admit new members that goes beyond the current invitation policy for observers. In time, the BRICS could evolve into something more like the EU, except that it would not rely on dollars or euros as its principal medium of exchange.
All of the BRICS have officially remained neutral in the Russia-Ukraine conflict and are not currently joining in U.S.-led sanctions against Russia, although some individual firms face secondary sanctions for trading with Russia. The sanctions on Russia have backfired in every way possible.
Russia’s hard currency income from oil and natural gas is larger than ever. The Russian ruble is much stronger than it was when the war began. China and India have purchased all of the oil and natural gas that Russia has to sell which negates efforts by Europe to “boycott” Russian energy.
On top of all of those failures, the West is driving the BRICS to form new trading and investment blocs and possibly a new reserve currency. There’s an old saying that when you’re deep in a hole, you should stop digging. The Biden administration keeps digging. The whole world will be the victim when trade and growth breakdown across the board.
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