The US is giving tensions to the
dragon one after another due to a deteriorating relationship with the coronavirus. Now the Trump government can pull China out of the US Dollar Payment
System (SWIFT) or cut its access. According to the Chinese newspaper South
China Morning Post, Beijing is under tension regarding this possible move by
the US.
The Society for Worldwide Interbank
Financial Telecommunication (SWIFT) is a network used by banks around the world
to report and receive financial transactions. It is a part of the
infrastructure that makes the US dollar play an important role in international
trade and investment.
Globally, banks have communication
links with US banks, through which they conduct US dollar transactions. Through
this payment system, White House can order US banks to stop transactions from
any individual, institution or countries. The ruling Communist Party of China,
which has surrounded the world about Xinjiang and Hong Kong, is in tension
these days.
However, some supporters of the CCP
also, believe that the US will not take the same drastic measures against China
as it did against Iran and North Korea, as it would increase the risk to the US
and the global economy. Some experts also say that China's fears are real
because if relations continue to deteriorate, the US can use the dollar
hegemony to attack Beijing.
This fear has spread in China at a time when the US has recently banned Chinese authorities and institutions for
torturing Uygar Muslims and attacking Hong Kong independence. Recently, the US
Secretary of State Mike Pompeo announced a visa ban on some executives of
certain technology companies, including Huawei.
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