Illustration: Chen Xia/GT

US officials expect the Group of Seven (G7) countries to send a "tough new warning" to smaller Chinese banks to "stop assisting Russia in evading Western sanctions," Reuters reported on Sunday, citing two people familiar with the matter. 

Whether and how the G7 countries will issue such a warning remains to be seen. But we hope that rationality will finally prevail among them. It should be noted that, on the Ukraine issue, China has always upheld an objective and just position, and taken concrete action to promote talks for peace. In stark contrast, the US continuously instigates and even coerces other G7 members to further stir up tensions, while also making groundless accusations against normal economic exchanges and cooperation between China and Russia. 

As an increasingly important participant in the global financial market, China has the right to conduct normal financial cooperation with other countries, including Russia, on the basis of mutual benefit. That cannot be interfered with or halted by anyone. The US, or any other country for that matter, has no right to interfere in normal financial cooperation between China and Russia. 

In recent years, financial cooperation between China and Russia has seen rapid development, achieving significant progress in various aspects and injecting new momentum into the overall economic and trade cooperation between the two countries.

For instance, the integration of settlement and payment systems between China and Russia is rapidly gaining momentum. Russian financial institutions, including banks, securities firms and insurance companies, are actively seeking partnerships with Chinese companies and institutions to address the needs of trade settlement and asset management.

In March 2023, China and Russia agreed to further enhance their mutually beneficial cooperation in the financial sector. This includes increasing the use of the Chinese and Russian currencies for settlements and promoting innovation in payment methods. Both countries are committed to responsibly advancing cooperation in the financial sector, which will result in tangible benefits for businesses and commercial institutions in both nations, as well as for other developing countries.

The potential for financial cooperation between China and Russia remains huge and offers opportunities for further development. Many companies in Russia are optimistic about the prospects of the Chinese yuan, and they see great untapped potential for cooperation in the financial sector.

China-Russia financial cooperation is a normal and critical part of financial cooperation among developing countries. Amid the current international financial situation, especially against the backdrop of accelerated de-dollarization in response to US debt risks, financial cooperation among developing countries is advancing rapidly.

The surging national debt of the US is posing severe financial risks both in the short and long term to the world economy and international financial markets, the IMF warned in April. A number of developing countries have already borne the brunt of the severe impact of the radical monetary policy of the US, and it is necessary for them to enhance financial cooperation to deal with such uncertainties in the future. Moreover, the US' weaponization of its currency in imposing sanctions on other countries also poses a serious risk for relevant countries.

Financial cooperation between China and Russia does not target any third party. It will be not be influenced by a third party, or subject to interference by any third party. China has the confidence, conditions and capabilities to ensure national financial and economic security. China has joined hands with other developing countries to promote financial infrastructure connectivity. This is not only an effort for developing countries to strengthen their long-term construction of economic security, but is of practical significance to counter the US' financial hegemony.

Cooperation between China and Russia in the financial field, as well as the rapid development of financial cooperation among developing countries, is a positive asset for the continuous advance of the global financial system amid uncertainties, and will continue to bring new vitality to the world economy.