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  • By The Financial District

China Preparing For Economic War Due To 'U.S. Containment'

Chinese policymakers are increasingly convinced that the US is determined to implement a full-fledged containment strategy against China.


Photo Insert: Even more moderate voices have acknowledged the profound changes in US-China relations behind the "decoupling theory," urging China to "prepare for the worst but strive for the best."



According to Zongyuan Zoe Liu, a fellow for international political economy at the US Council on Foreign Relations, who wrote for Foreign Policy on June 17, 2022, Beijing sees the Indo-Pacific Economic Framework for Prosperity as the economic mirror of the Quadrilateral Security Dialogue and AUKUS, two US-led security pacts that Beijing regards as anti-China coalitions.


Chinese officials, academics, and media rhetoric are increasingly talking about self-sufficiency and preparing for a forced decoupling from the United States.



To prepare for the risk of forced financial decoupling, Fang Xinghai, vice chairman of the China Securities Regulatory Commission, proposed hastening the yuan's internationalization.


Even more moderate voices have acknowledged the profound changes in US-China relations behind the "decoupling theory," urging China to "prepare for the worst but strive for the best."


All the news: Business man in suit and tie smiling and reading a newspaper near the financial district.

While the Chinese military will most likely be strengthened as part of the response, the party-state will also tighten two economic strings. It will strengthen China's strategic position in global supply chains and expand its influence in international commercial sea lanes in order to pursue a pre-existing self-reliance strategy and sanction-proof the Chinese economy.


The Chinese Communist Party (CCP) centered its 2021 historic resolution on "independence and self-reliance." The West's recent harsh sanctions against Russia have reminded Chinese leaders of the importance of increasing economic autonomy.


Market & economy: Market economist in suit and tie reading reports and analysing charts in the office located in the financial district.

On Feb. 25, the day after Russia invaded Ukraine, a People's Daily editorial argued that "independence and self-reliance ensure that the cause of the party and the people will continue to move from victory to victory." The government recently vowed to improve self-reliance by building a "national unified market."



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