Chinese Banks Tighten Restrictions on Russian Clients Amid Fears of U.S. Sanctions

Despite a 'no limits' partnership with Russia, China's dependence on Western markets leads to a softer stance towards the U.S.

China's state-owned banks are tightening restrictions on financing Russian clients, fearing secondary sanctions from the U.S.
At least two Chinese banks have ordered a review of their Russian businesses, focusing on cross-border transactions and clients on the U.S. sanctions list.
The banks will also stop providing financial services to the Russian military-industrial complex, regardless of the currency or location of the transactions.
The move comes after the U.S. Treasury Department announced last month that it would impose secondary sanctions on overseas financial firms and banks helping Moscow's war effort in Ukraine.
Despite China's President Xi Jinping declaring a 'no limits' partnership with Russia, China remains heavily dependent on Western markets, and has softened its stance towards the U.S. in recent weeks.