Economy

CHINA IS FOUND RESPONSIBLE FOR AIDING PUTIN'S WAR IN UKRAINE BY THE U.S.

4 Mins Read

By Rashmi Goel

Biden administration presented evidence suggesting Chinese state-owned companies are assisting Russia in Ukraine's war effort in order to determine if Beijing is aware of these activities. According to sources familiar with the situation. A description of the support provided by the people was limited to stating that it provided non-lethal military and economic assistance that did not evade sanctions imposed by the United States and its allies following the Russian invasion of Ukraine. The individuals asked not to be identified as discussing private deliberations.

US Officials have discussed the issue with their Chinese counterparts and warned them about the implications of providing material support to the war, people said, though they declined to provide further details. Although Xi Jinping has avoided criticizing Russia over the war, he has also offered to play a role in peace talks and condemned nuclear weapons. A spokeswoman for the National Security Council and the Central Intelligence Agency declined to comment. Despite two emails seeking comment, the Chinese Embassy in Washington did not respond. Even though the details aren't clear and are still being debated, officials from the US said they agree Russia-China has become increasingly close and the Chinese are doing more to support Russia than they did in the past.

According to those familiar with the administration's thinking, state-owned enterprises knowingly assisted Russia in its war effort. They did not elaborate on the evidence the administration might have. In order to determine their significance, the administration is reviewing the evidence accumulated so far. If Chinese companies supported the invasion, it would negatively affect US policy toward both Russia and China. As part of its strategy over Ukraine, the US is isolating President Vladimir Putin's government, trying to choke off his economy, and hindering the war effort. This strategy could be significantly undermined by Chinese support, the world's second-largest economy. A decision about how aggressively to push back would have to be made if Biden and his advisers determined that China's government was involved or tacitly accepting these state-owned enterprises' actions. It would risk opening up a whole new era of conflict at a time when the US has struggled to balance efforts to limit Chinese access to high-end microchips with its desire to confront China over its perceived aggressive posture toward Taiwan.

In February, US secretary of state Anthony Blinken will visit Beijing, the first such visit since the Covid-19 outbreak shut down travel in early 2020. Prior to the war, China and Russia established a "no-limits" relationship, and US officials believe that China initially intended to supply Russia with lethal weapons. However, the administration argues China is not doing enough to facilitate Putin's invasion because it has scaled back that plan. According to the administration, China's government wants to help Russia and isn't neutral as it claims.

The Chinese economy has also grown stronger despite US pressure to distance itself from the Russian economy. Aside from UN sanctions, China opposes all other sanctions and views American requests for trade restrictions as a violation of sovereignty. Imports of goods from Russia to China increased by nearly 50% in 2022, while exports increased by 13%. State-owned enterprises number thousands in China, some directly controlled by the central government with chief executives equal to ministers and others with less direct oversight. Though the details of their operations are not always monitored in detail, all are under Communist Party influence. This trend would only exacerbate the problem that US officials have publicly identified.

Blinken said he had expressed his concerns about China's "alignment with Russia" after meeting a senior Chinese official in July. Blinken said at the time, "What you hear from Beijing is that it declares itself neutral". As far as neutrality is concerned, I would say that it's pretty hard to remain neutral when it comes to this aggression. It is clear that there is an aggressor. There is clearly a victim". During a phone call in late December, Xi and Putin discussed trade, energy, finance, and agriculture, according to Chinese state television. According to the broadcaster, Xi pledged to continue playing a constructive role in efforts to resolve the Ukrainian "crisis".

It is important to note, however, that a deepening of support for Moscow would cut against recent indications that China is trying to improve its ties with the US after months of heightened tensions. During their meeting in Bali in last year, President Joe Biden and Chinese President Xi expressed their opposition to "fighting nuclear wars" and to the use or threat of using nuclear weapons in Ukraine, according to a statement released by the White House.

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