China reveals new burden for world economy

The financial system is still weakened after the Covid-19 pandemic

Sanctions against Russia over its invasion of Ukraine will become a new burden for the world economy, which has not yet recovered from the Covid-19 pandemic, said Chinese President Xi Jinping on Tuesday, RIA Novosti news agency has reported, citing Chinese state broadcaster CCTV.

“Relevant sanctions will affect the stability of global finance, energy supplies, transportation, and supply chains and will further burden the global economy, which has been under the heavy burden of the pandemic, and that is disadvantageous to all parties,” Xi said, speaking at a virtual meeting with French President Emmanuel Macron and German Chancellor Olaf Scholz.

The Chinese leader also added that China, France, and Germany should make efforts to reduce the negative impact of the crisis, and jointly support peace talks between Russia and Ukraine, to prevent the conflict from escalating or “spinning out of control,” RIA Novosti says.

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The EU has imposed several rounds of severe sanctions against Russia, targeting the country’s banking and industrial sector, freezing Moscow’s foreign reserves, and causing a mass exodus of foreign businesses from the country.

China has refused to condemn Russia’s actions in Ukraine and has consistently called for a negotiated diplomatic solution to the conflict.

Trade between Russia and China has been booming despite events in Ukraine. According to Chinese customs data released on Monday, the trade turnover between the two countries increased by nearly 39% in the first two months of this year compared to the same period last year, exceeding $26 billion.

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