China announced start of stress test for its economy
China is conducting a comprehensive stress test of the economy and financial system to prepare for sanctions similar to those currently being imposed against Russia, TASS reports
The authorities do not disclose the specific goals of this testing, but it has evidently become a natural reaction – given the close relations between Russia and China.
Beijing suggests that a possible sanctions policy against China will be carried out in a similar way to the one that Moscow is currently facing. This means that it will affect the banking sector, international payments and logistics chains. Although the Chinese economy is less dependent on imports, a failure in financial and logistics chains can lead to unpleasant consequences. Accordingly, the stress test of the economic sector will enable the country – which is home to millions of people – to avoid the difficulties that Russia initially faced. In China, they believe that, in this way, they will be able to avoid at least some of the mistakes and misconceptions.
