CWP alum Zongyuan Zoe Liu testimony to the U.S.-China Economic and Security Review Commission

The escalation of U.S.-China trade tension since 2018 and G7’s sanctions against Russian entities and individuals since 2022, notably the freezing of Russian foreign exchange reserves, have prompted China’s policymaking community to strategize immunizing the Chinese economy against Western sanctions and strengthen China’s financial security. Despite Western pressure and sanctions against Russia, China continues trading with Russia. During Russian President Putin’s visit to Beijing in April 2024, Chinese President Xi Jinping and President Putin strengthened their solidarity. 

While criticizing Western sanctions against Russia as having no legal basis, Beijing has been pragmatically evaluating the danger of China’s reliance on Western countries for strategic industrial inputs and technology. Unabated U.S.-China geopolitical tensions and Western governments’ industrial policies to incentivize firms to reduce supply chain dependence on China have diminished trade between China and the West and fueled concerns among Chinese policymakers and academics about further intended decoupling. The Chinese government has accelerated its development of an anti-sanction policy framework and an alternative global system to prevent China from falling victim to Western sanctions like Russia did.

'China’s Stockpiling and Mobilization Measures for Competition and Conflict' Zongyuan Zoe Liu’s testimony to the U.S.-China Economic and Security Review Commission on China's approach to self-sufficiency, stockpiling, and sanctions preparedness. Testimony by Zongyuan Zoe Liu

Zongyuan Zoe Liu is Maurice R. Greenberg fellow for China studies at the Council on Foreign Relations (CFR). Her work focuses on international political economy, global financial markets, sovereign wealth funds, supply chains of critical minerals, development finance, emerging markets, energy and climate change policy, and East Asia-Middle East relations. Dr. Liu’s regional expertise is in East Asia, specifically China and Japan, and the Middle East, specifically Gulf Cooperation Council countries. Dr. Liu is the author of Can BRICS De-dollarize the Global Financial System? (Cambridge University Press) and Sovereign Funds: How the Communist Party of China Finances its Global Ambitions (Harvard University Press).

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