U.S. May Sanction Chinese Banks; Blinken Urges Fair Play in China

U.S. Treasury Secretary Janet Yellen has indicated that the United States is considering imposing sanctions on certain Chinese banks, potentially cutting them off from the global financial system. This stance aligns with her broader policy that currency intervention should only occur in rare and exceptional circumstances. The consideration of sanctions comes amid efforts by countries like Japan, South Korea, and Turkey to manage a strong U.S. dollar exchange rate. Yellen emphasized that such measures would be taken if necessary, although she also stated that there are no imminent sanctions planned specifically for Chinese banks' involvement in Russian trade. This statement comes as Secretary Blinken is in China, urging fair play.