The important point from a China business perspective is that if the US spreads its sanctions net to China, then businesses working in and with the country would also face a potential risk of sanctions being applied to them.
There are many consequences arising from the war in Ukraine and they include some that impact the way we do business with China. The consequences arise from the current use, and the potential future use, of sanctions against Russia. Like military WMDs (weapons of mass destruction), these economic weapons inflict pain indiscriminately, striking both the culpable and the innocent.
The sanctions do not apply only to Russian businesses. They also apply to countries that continue to do business with Russia, although there are special deals for friends. US President Joe Biden has threatened China with consequences should it break sanctions by trading with Russia. However, Biden has also approved India’s continued purchase of Russian oil and military equipment. The White House said this did not break sanctions, although it is difficult to see how this is the case.
