Posted on 07/16/2020 9:31:41 PM PDT by BeauBo
Chinese banks seen as complicit in Beijing's clampdown on Hong Kong face being cut off from much of the global financial system under wide-ranging sanctions that are a part of newly enacted U.S. legislation.
The Hong Kong Autonomy Act, signed Tuesday by U.S. President Donald Trump, sets out punitive measures against lenders that do business with sanctioned officials, including bans on receiving loans from American banks, participating in foreign-currency and banking transactions, and investing in equity or debt. The government may also freeze the assets of designated institutions or restrict exports to them...
China's economy "for the foreseeable future will be dependent on U.S. dollar transactions," Republican Sen. Pat Toomey, a co-sponsor of the legislation, said in May, around when the bill was introduced...
The prospect of losing access to the international reserve currency is a potent threat. China's four largest state-owned banks held about $1.1 trillion in dollar-denominated liabilities at the end of 2019, according to Bloomberg Intelligence. These institutions not only handle trade transactions for Chinese businesses, but also serve as sources of financing for Beijing's Belt and Road infrastructure initiative...
"In the worst-case scenario, Chinese companies that do business overseas could become unable to transfer U.S. dollars," said Takahide Kiuchi, executive economist at Nomura Research Institute. "Chinese trade would naturally be diminished."...
Locking out major Chinese banks would quickly squeeze the supply of greenbacks.
(Excerpt) Read more at asia.nikkei.com ...
It is a real vulnerability of the ChiComs. They need hard currency to buy the imports that they massively are dependent upon - fuel, food and minerals
This is not a problem for the ChiComs. They and their puppet Norks have been printing our money for years.
Some of this idea could go full circle if they need hard U.S. greenbacks to purchase our goods...
This is excellent.
At the same time, we push them hard to honor the trade deal or we force them to lose the US market.
Let’s see how cutoff they really get. It is no big deal to move money to another another country and trade from that country into whatever currency they want. I suspect this requires the cooperation of all countries that have a major currency to truly cut them off.
I think we purchase (much) more goods from China, than China buys from us.
Massively.
Faster.
The Chinese use a lot of counterfeit bills. I was warned not to accept them as payment when I sold my co-op. I didn’t. I insisted on bank checks. There are Chinese buyers who walk up to look at houses with grocery bags of greenbacks, like a quarter million worth of them. Don’t accept them.
It would hit dollar as hard if not worse. Do you think they’d stop trade as a result? There is yuan, euro and other currencies for that matter.
I’m praying for The Three Gorges Dam to bust. Man that’ll be the end of the CCP.
My Drill Sergeant once said “the only good commie is a dead Commie”
Won’t shed any tears if the Three Gorges Dam breaks.
“The Three Gorges Dam to bust”
Katie, Bar the Door!
China’s history is a series of catastrophic floods, along the “River of Tears” (Yellow River), but the Yangtze, where the three Gorges Dam is located, is actually bigger.
Wuhan and Shanghai are right in its path.
C’mon Yellow Dragon! Wash them Commies out!
“Do you think they’d stop trade as a result? There is yuan”
You guys take the yuan for your oil.
You can always use it for insulation on cold nights, if it turns out to not be worth much else.
People like that are the enemy on our soil.
God bless your drill Sergeant knew what he was talking about. I never served.
A Drill Sergeant is Army, correct? And a Drill Instructor is Marine Corps?
There is euro as well.
I don’t think LeBron was in favor of this legislation.
“There is euro as well.”
Come on... take the yuan. You can trust the communist party of China.
Reportedly, the Chinese will also have some Iranian Tomans to spend.
As good as gold, I am told.
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