the US administration is likely to use more often – are not so bright. Last month, a US judge found three large Ch
inese banks in contempt of court for refusing to produce evidence for an investigation into violations of sanctions aga上海千花坊
inst the Democratic People’s Republic of Korea. The ruling ignores the fact that, according to Chinese law, any request for ba
上海千花坊品茶微信nking records should be handled in accordance with the US-China mutual legal assistance agreement.
Chinese financial institutions thus need to prepare for more troubles, including the risk of being blacklisted – that is, deprived of the right to u
se the US dollar and important services, such as the Society for Worldwide Interbank Financial Telecommunication financial m上海千花坊
essaging service and the Clearing House Interbank Payments System. It is a punishment few companies can survive.
上海千花坊品茶微信Already, one Chinese bank has been included on the Correspondent Account or Payable-Through Acc
ount Sanctions list, meaning that it cannot open correspondent or payable-through accounts in the US.
Make more efforts to internationalize yuan上海千花坊
The Chinese government has few options here, but it can step up legislative efforts to protect Chinese banks’ interests, while encour
上海千花坊品茶微信aging Chinese financial institutions to treat compliance with US financial regulations with the utmost c
are. It should also continue working to internationalize the yuan, as there is still a long way to go on this front.
China remains committed to its 40-year-old process of reform and opening-up. Today, that process must focus on redoub
ling efforts to strengthen intellectual property rights protection, adhering to competitive neutrality and de上海千花坊品茶微信
fending multilateralism. But following through on this commitment will require China to find ways to manage escalating ten
上海千花坊sions with the US and avoid a costly – and potentially devastating – reconfiguration of the global economy.
The author, a former president of the China Society of World Econo
mics and director of the Institute of World Economics and Politics at the Chinese Aca上海千花坊品茶微信
demy of Social Sciences, served on the Monetary Policy Committee of the People’s Bank of China from 2004 to 2006.