Zhou Yu, a researcher at the Shanghai Academy of Social Sciences, suggests the U.S. will increasingly resort to financial sanctions to pursue its geopolitical goals. Frequent and large-scale deployment of sanctions, Zhou argues, will ultimately undermine their effectiveness by encouraging other states to reduce their dependence on global financial public goods controlled by the U.S., and by dampening enthusiasm for sanctions among other Western powers, which the U.S. relies on to make its actions effective.
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.