Original Author: Zhang Bei
Impact of Financial Sanctions on National Financial Security and Countermeasures
Zhang Bei, a senior economist at the People’s Bank of China, warns that risks to China’s financial security are increasing amid an evolving geopolitical environment. Zhang sees sanctions as a double-edged sword, with economic and reputational costs to the sanctioning country—particularly if the sanctioned country is well-integrated with the global economy and financial markets. As a result, Zhang argues that China can reduce the likelihood and impact of potential sanctions by increasing financial openness and integration, diversifying trade and investment relations, and taking a more active role in global economic and monetary governance, including through measured RMB internationalization.