US Treasury Secretary Janet Yellen at the end of her four day trip to China chose to deliver a stark warning on an ultra-sensitive topic in US-China relations. She warned against any actions of Beijing to bolster Russia's military capacity by supplying ammunition or weaponry amid Moscow's ongoing war in Ukraine, following an initial weekend announcement from US Treasury.
"I stressed that companies, including those in the PRC, must not provide material support for Russia’s war, and that they will face significant consequences if they do," Yellen said ahead of a press conference at the US ambassador’s residence in the Chinese capital, near the close of her tour.
"Any banks that facilitate significant transactions that channel military or dual-use goods to Russia’s defense industrial base expose themselves to the risk of US sanctions," she warned.
The timing of the warning was also interesting given Russian Foreign Minister Sergey Lavrov had arrived in Beijing on the same day for the start of a two-day visit.
Bloomberg has cited US officials to say that Chinese companies are "supplying microelectronics and machine tools to Russia to produce tanks, as well as optics and propellants for use in missiles." Beijing has batted down these reports and allegations of US officials has but more "foreign interference" from Washington.
Chinese Foreign Ministry spokesperson Mao Ning responded to Yellen on Monday, telling a press conference, "China-Russia relations should not be attacked or smeared, and the legitimate rights and interests of China and Chinese companies should not be harmed."
Mao continued, "China will take resolute measures to safeguard our legitimate rights and interests," and added: "The normal cooperation between China and Russia should not be subject to foreign interference or restriction."
The foreign ministry further repeated Beijing's longtime stance on the Russia-Ukraine war, saying it is "committed to playing a constructive role in promoting ceasefire and political settlement of the crisis" between the two sides.
Russian and Chinese officials have repeatedly denied claims that Russia's military has purchased ammunition and 'dual use' technology from China. This has been a Washington allegation and talking point since near the beginning of the more than two year-long conflict.
In Ukraine, the Zelensky government has of late signaled a desire to see China deeply involved in efforts to resolve the war through a '10-point peace plan'. This plan floated by Zelensky is seen as unrealistic from Moscow's perspective, given it requires all Russian troops to leave Ukraine territory, which would be relinquished to Kiev. For this reason, China has not warmed to Zelensky's efforts, given especially some key conditions are simply a non-starter for Moscow.
As for Yellen's China trip, which attracted considerable interest in Western media, she earlier touted a desire for the US to "pursue a healthy economic relationship with China" but at the same time criticized Chinese industries for oversubsidizing to the point that manufacturers are churning out more goods for export "than the global market can bear."
Upon Lavrov's arrival in Beijing, the Russian top diplomat immediately delivered a warm message from President Vladimir Putin to Chinese leader Xi Jinping, saying, "I am glad and honored to convey to you the warmest greetings from Russian President Vladimir Putin. He highly valued your congratulatory address, which you issued following the presidential election held this March."
