China could soften blow of Russian sanctions, US warns

President Joe Biden warned Chinese General Secretary Xi Jinping to hold back from throwing Moscow an economic lifeline during its war against Ukraine, blunting the West’s penalties in a move the United States believes Beijing is eyeing.

U.S. officials have raised concerns about Beijing’s ability to supply Moscow with support, warning that China could face repercussions for aiding Russia as it continues its assault on Ukraine. Western sanctions have crushed Russia’s economy, but a lifeline from its trading partner and neighbor could help Moscow weather the storm.

In a call with Xi on Friday, Biden made clear that China should not support Russia during the conflict but made no specific requests of Beijing, a senior administration official told reporters. “He was laying out his assessment of the situation … and the implications of certain actions.”

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Senior U.S. officials see signs that China is looking at ways to ease the economic burden on Russia imposed by Western sanctions, people familiar with Beijing’s deliberations told Bloomberg. The sources declined to describe these further.

While the White House has declined to speak publicly about the possible repercussions, it has reiterated its concerns about China’s alignment with Moscow despite Beijing’s efforts to cast itself as a neutral party to the conflict.

In a Chinese readout of the call with Biden, Xi urged an end to the war but laid no blame on Russia. Still, Biden insisted to CNN that the call “went well.”

U.S. intelligence has reported that China has already favorably received requests for assistance from Moscow, including ammunition, surveillance equipment, and field supplies.

The threat of U.S. penalties has rattled Chinese markets, with Xi warning in a call with Biden of potential supply chain disruptions should these escalate further.

U.S. failure to “remain cool-headed and rational” as it wages economic war against Russia could trigger “serious crises” across economic, commodity, and industrial sectors, he said, “crippling” the global economy.

“Sweeping and indiscriminate sanctions would only make the people suffer,” Xi said, according to a Chinese government readout.

The Chinese leader’s swipe seemed to imply that the U.S. could face a ricochet from targeting Russia’s trading partners. The U.S. is already navigating record inflation, spiking consumer prices, and supply chain disruptions.

In the nearly two-hour call with Biden, the Chinese leader called for peace between Russia and Ukraine and pressed Biden to drive the countries toward a negotiated settlement. He said they needed urgently to “demonstrate political will” to end the conflict.

“As two Chinese sayings go, ‘It takes two hands to clap.’ ‘He who tied the bell to the tiger must take it off,’” Xi said.

Washington has heeded Ukraine’s requests for security assistance with weapons that include surface-to-air missile defense systems, shoulder-mounted anti-armor launchers, millions of rounds of ammunition, and drones.

Top Biden administration officials said Beijing faces reputational stakes in the conflict.

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China will join the U.S. in backing Ukraine if Xi “wants to be a true leader on the world stage,” Deputy Secretary of State Wendy Sherman said on MSNBC before the two leaders spoke Friday. “We will see whether in fact Xi Jinping makes the right choice here.”

She added, “His future is with the United States, with Europe, with developing countries around the world. His future is not with Russia and Vladimir Putin.”

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