London Daily

Focus on the big picture.
Wednesday, Sep 30, 2026

Beijing orders ‘stress test’ as fears of Russia-style sanctions mount

Beijing orders ‘stress test’ as fears of Russia-style sanctions mount

Exclusive: exercises are to prepare China for the possibility of similar embargos from the US and its allies

Concerned about sweeping Russia-style sanctions from the west, Beijing has ordered a comprehensive “stress test” to study the implications of a similar scenario for its economy, the Guardian has learned.

According to a person with direct knowledge of the matter, an extensive exercise began around late February and early March when western allies imposed unprecedented sanctions against Moscow. Several key Chinese government agencies – from banking regulation to international trade – have been asked to come up with responses if the west imposed the same embargos on to China.

“Those involved in this exercise use how Russia was treated as a baseline for China’s own policy response should it be treated in a same fashion by the west,” the person added. “This stress test involves a range of methodology, including modelling.”

Beijing did not specify why it had asked its vast bureaucracy to carry out such an exercise, the person said. They said that it was a “natural reaction” from Beijing given its close relationship with Moscow. A second source, who wishes to remain anonymous, said that Chinese diplomats had in the past few weeks also been meeting experts to understand the trajectory of this conflict.

“From Beijing’s perspective, if the US-led western allies could take such measures against Moscow, they could also do the same to China. Therefore, it needs to know how resilient the country really is,” said Tong Zhao, a senior fellow at the Carnegie Endowment for International Peace based in Beijing.

But Edward Fishman, a former adviser to John Kerry on economic sanctions at the US state department, said that no economy – not even China – was immune to the types of financial sanctions that the west has wielded against Russia. “There is no good alternative to the western financial system, and that’s likely to remain the case for a long time,” he said.

“The future of economic conflict between the west and China, therefore, will likely be narrower in scope than what we’ve seen from the west in recent months against Russia. It will centre on jockeying for leverage in strategic areas – such as frontier technologies and next-generation infrastructure – not on trying to produce broad-based economic disruption.”

Zhao said that the current exercise by Beijing could be an attempt to understand what the short-term cost to China would be if it provided material support to Russia over the course of this conflict. US officials this week said they had not yet seen military and economic support for Russia from China, despite earlier warnings of the possibility.

On 22 April, officials from China’s finance ministry and the central bank held a meeting with domestic and foreign banks, including HSBC, to discuss how they could protect China’s overseas assets should Russia-style sanctions led by the US and its western allies also be imposed, according to a recent report by the Financial Times.

Chinese analysts were caught off-guard by Russia’s invasion of Ukraine on 24 February, several personnel said. But the western response, according to Zhao, was “more surprising to the Beijing leadership initially”.

“For the past few years, there’s been a growing concern among Beijing’s leadership that a strategic conflict between China and the west may not be a question of whether it’d happen, but when it will happen, in particular over the issue of Taiwan.”

Beijing has strongly opposed any link to Taiwan when discussing the war in Ukraine, insisting they are two separate matters. Last week, the Chinese embassy in London again criticised British media’s comparison of the two, saying the Taiwan issue “bears on China’s core interests and we will brook no external interference”.

The information office of China’s state council has been contacted by the Guardian for comments.


‘Security guarantee’


China’s foreign ministry in the past week stepped up its rhetorical support for Russia, saying that the two sides “rise above the model of military and political alliance in the cold war era”, and that the two countries “commit themselves to developing a new model of international relations”.

Curiously, around the same time, Ukraine’s foreign minister, Dmytro Kuleba, told the official Xinhua news agency that Kyiv was keen to involve Beijing in ensuring its security. “We propose that China becomes one of the guarantors of Ukraine’s security, this is a sign of our respect and trust in the People’s Republic of China,” he said on Saturday.

In 2013, China agreed to provide Ukraine with “security guarantees” if it is invaded or threatened with nuclear attack. But critics say Beijing remained evasive on the same issue after Russia’s invasion in February.

Kuleba also told Xinhua that European countries are concerned about the situation because they could not guarantee Russia would not invade them tomorrow. “We also believe that this war is not in China’s interests,” he said, adding: “If Russia is not stopped now, it will lead to more crises a few years later.”

Newsletter

Related Articles

0:00
0:00
Close
Equity Calls for UK Personality Rights to Protect Performers From AI Replication
OpenAI Pauses Advanced Model Training Following Safety Concerns
Scottish Government Proposes Replacing 32 Councils With Larger Regional Authorities
Ofgem Raises UK Household Energy Price Cap by 4% From October
UK Counter-Terrorism Police Continue Investigation After Five Arrests Near RAF Fairford
OECD Cuts UK 2027 Growth Forecast to 1%
Labour Says State Pension Triple Lock Remains Protected Through Current Parliament
Andy Burnham Pledges National Care Service With Free Social Care in England
Six Flags Permanently Shuts Landmark X2 Roller Coaster Following Safety Scandals
Metropolitan Police Rule Out Terrorism in Golders Green Stabbing Investigation
Lithium-Ion Battery Identified as Cause of Fatal Merseyside House Fire
UK Department Rejects New Sea Use Framework Due to Stakeholder Fatigue
Major Thames Water Pipe Burst Causes School Closures in London
Aldi Commits £900 Million to Expand UK Supermarket Network
Scottish Affairs Committee Warns Skills Shortages Threaten Defence Sector Expansion
Parliamentary Committee Warns Northern Ireland Budget Deadlock is Stalling Economic Growth
NHS Hospitals in England Face Severe Shortages of Essential Medications
Home Secretary Signals Major Overhaul of UK Immigration and Leave to Remain Policies
Chancellor Promises New Job Schemes Alongside Strict Fiscal Discipline
Energy Secretary Proposes Taxpayer-Funded Green Transition and National Electricity Grid
UK Government to Renationalise Avanti West Coast Railway Franchise in March
Prime Minister Andy Burnham Pledges Major Social Care and Infrastructure Reforms
Five Suspects Released on Bail Following Alleged Bomb Plot Near RAF Fairford
UK Diesel Prices Hit Record High of 199p Per Litre
Transport for Wales and Network Rail Complete Electrification of South Wales Metro
Defra Expands Incentives for Sustainable Farming and Biodiversity in England
Northern Ireland Executive Approves Funding Package to Resolve Public Sector Pay Disputes
Universities UK Warns of Financial Insolvency Risks for Higher Education Institutions
UK Prisons Activate Emergency Protocols to Manage Capacity Pressures
UK Government Establishes New Safety Standards for Frontier AI Models
Home Office Tightens Skilled Worker Visa Requirements and Dependent Rules
Ministry of Defence Restructures Royal Navy Frigate Procurement to Prevent Overruns
UK Government Mandates New Housing Targets to Address National Shortage
UK and Scottish Governments Reach Agreement on North Sea Energy Transition
NHS Launches Digital Overhaul to Reduce Surgical Backlogs in England
Bank of England Holds Interest Rates as Service Sector Inflation Persists
UK Chancellor Announces Fiscal Consolidation Measures to Stabilize National Debt
RNLI Chief Executive Condemns Misinformation and Abuse Targeting Volunteer Crews
Metropolitan Police Charge Swindon Man with Assisting Foreign Intelligence Services
British Intelligence Report Warns Environmental Collapse Threatens Global Defense Infrastructure
Conservative Party Rejects New Taxes to Fund UK Social Care Reforms
Labour Government Signals Intent to Ease Residency Restrictions for Foreign Care Workers
Prime Minister Andy Burnham and Norwegian Prime Minister Jonas Støre Meet to Strengthen North Atlantic Defense
UK Government Plans to Revive Equity Loan Scheme to Assist First-Time Home Buyers
Prime Minister Andy Burnham Pledges Radical Reform for UK Utilities and Social Care
UK Treasury Prepares Difficult Autumn Budget Amid High Debt and Energy Volatility
Civil Aviation Authority Launches Review of Air Traffic Systems Following Digital Failure
X Reports First Increase in UK Revenues Following Advertiser Boycott
Shetland Islands Council Approves £400 Million Inter-Island Tunnel Project
Foreign Secretary Ed Miliband Warns Iran Against Hostile Activities on British Soil
×