{"id":1472945,"date":"2024-06-24T06:00:00","date_gmt":"2024-06-24T10:00:00","guid":{"rendered":"https:\/\/bugaluu.com\/news\/?p=1472945"},"modified":"2024-06-24T06:00:00","modified_gmt":"2024-06-24T10:00:00","slug":"this-chinese-companys-compliance-with-washingtons-anti-russian-sanctions-is-very-consequential","status":"publish","type":"post","link":"https:\/\/bugaluu.com\/news\/this-chinese-companys-compliance-with-washingtons-anti-russian-sanctions-is-very-consequential\/1472945\/","title":{"rendered":"This Chinese Company’s Compliance With Washington’s Anti-Russian Sanctions Is Very Consequential"},"content":{"rendered":"

This Chinese Company’s Compliance With Washington’s Anti-Russian Sanctions Is Very Consequential<\/span><\/p>\n

\n

Authored by Andrew Korybko via Substack,<\/em><\/a><\/p>\n

China\u2019s Wison New Energies announced in a\u00a0LinkedIn post<\/a>\u00a0on Friday that they\u2019re immediately stopping all their Russian projects \u201cin view of the strategic future of the company\u201d following the\u00a0latest imposition of US sanctions<\/a>\u00a0against that country\u2019s LNG industry in mid-June.<\/strong>\u00a0Oilprice.com<\/a>\u00a0wrote that this will \u201cdeal a blow\u201d to Russia\u2019s\u00a0Arctic LNG 2 project<\/a>\u00a0after Wison was\u00a0contracted<\/a>\u00a0to build its\u00a0modules<\/a>, \u201cwhich are massive, prefabricated structures that facilitate the rapid construction of LNG processing plants.\u201d<\/p>\n

<\/a><\/p>\n

They also reminded their audience that Arctic LNG 2 \u201chas been considered key to Russia\u2019s efforts to boost its global LNG market share from 8% to 20% by 2030-2035.\u201d The EU\u2019s US-pressured \u201cdecoupling\u201d from Russia\u2019s pipeline gas network compelled that country to ramp up its LNG projects in order to freely export this resource in the coming future so as to make up for tens of billions of dollars in lost revenue. These plans might therefore be further delayed by Wison\u2019s compliance with US sanctions.<\/p>\n

RT reported in late December that two major Chinese energy companies had declared force majeure on their participation in Arctic LNG 2 after a prior round of US sanctions against that project, the significance of which was analyzed\u00a0here<\/a>\u00a0at the time. <\/strong>To bring the reader up to speed for their convenience, the takeaway was that China\u2019s complex economic interdependence with the West predisposes its national champions to complying with that bloc\u2019s unilateral restrictions in order to not lose their market there.<\/p>\n

China is officially opposed to all sanctions that are imposed outside of the UNSC, but it also gives its companies the choice whether to voluntarily comply with them, even those that are state-owned enterprises such as the ones from RT\u2019s report last December. Their decision to go along with these measures is respected by the state since they\u2019re supposed to serve China\u2019s interests, not Russia\u2019s or anyone else\u2019s, and this sometimes requires them to make tough decisions for the greater national good.<\/p>\n

Neither the Chinese state nor its companies should therefore be negatively judged for voluntarily complying with US sanctions, but the very fact that this compliance continues occurring should result in members of the\u00a0Alt-Media Community<\/a>\u00a0(AMC) correcting their false perceptions about Russian-Chinese ties. Many top influencers adhere to the dogma that these two see eye-to-eye on everything and are jointly coordinating all their moves in order to accelerate multipolar processes, but that\u2019s not true.<\/p>\n

While their strategic ties are closer than ever and can nowadays even be described as them having formed a\u00a0Sino<\/a>–Russo<\/a>\u00a0Entente<\/a>, they still disagree on\u00a0Kashmir<\/a>\u00a0and the\u00a0East Sea\/South China Sea<\/a>\u00a0issues since Russia fully supports\u00a0India<\/a>\u00a0and\u00a0Vietnam<\/a>\u2019s respective positions. Nevertheless, Russia and China responsibly manage these disagreements for the greater multipolar good, the same as they\u2019re expected to do regarding Chinese companies\u2019 compliance with US sanctions, including those against Arctic LNG 2.<\/strong><\/p>\n

This insight is relevant with regards to the AMC since it\u2019s important for top influencers to accurately reflect such facts in their work lest they inadvertently mislead their audience about those two\u2019s ties.<\/p>\n

Russia and China aren\u2019t \u201cagainst\u201d one another, but they still prioritize their corresponding national interests. These largely overlap, in which cases they cooperate to pursue their shared goals, but they sometimes diverge and thus lead to developments like Chinese companies complying with US sanctions.<\/strong><\/p>\n

As regards this latest example, it\u2019ll complicate Russia\u2019s ambitious LNG plans and therefore risk slashing its future revenue flows, with the possible consequence being that it could also affect those two\u2019s stalled talks on the Power of Siberia II pipeline. Russia might either concede to China\u2019s reportedly requested basement-bottom prices out of financial desperation or it\u2019ll refuse to do so out of resentment and thus\u00a0leave this project in limbo indefinitely<\/a>\u00a0unless\/until China eventually reconsiders its stance.<\/p>\n

The second scenario of China agreeing to pay higher but nonetheless still privileged prices for Russian gas could play out if US pressure upon it increases in the coming future as is expected following the\u00a0Russian-North Korean mutual defense pact<\/a>. The preceding hyperlinked analysis explains these dynamics more in detail, but in brief, those two\u2019s new agreement will likely be exploited by the US to redouble its regional military presence at the expense of China\u2019s objective national security interests.<\/p>\n

In that event, and if the abovementioned trend unfolds in parallel with the US applying more pressure upon China in the East Sea\/South China Sea in ways that hint at a credible intent to blockade its energy shipments in case of crisis, then China might reconsider its stance and agree to Russia\u2019s pipeline terms. The additional price would be well worth paying for receiving reliable gas from its neighbor instead of holding out for a better price and risking the US cutting off its LNG imports in the meantime.<\/p>\n

Returning to the lede, Wison\u2019s compliance with US sanctions against Russia should prompt the AMC to finally correct its false perceptions about the Sino-Russo Entente, and it might also play a role in determining how the Power of Siberia II pricing dilemma is resolved as was just explained. <\/strong>Considering that it\u2019ll also complicate Russia\u2019s ambitious LNG plans, from which a lot of its future revenue is expected to be derived, this makes that company\u2019s decision much more important than many might have thought.<\/p>\n<\/div>\n

Tyler Durden<\/a><\/span>
\nMon, 06\/24\/2024 – 02:00<\/span><\/p>\n

\u200bhttps:\/\/www.zerohedge.com\/geopolitical\/chinese-companys-compliance-washingtons-anti-russian-sanctions-very-consequential<\/a>\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"

This Chinese Company’s Compliance With Washington’s Anti-Russian Sanctions Is Very Consequential Authored by Andrew Korybko via Substack, China\u2019s Wison New Energies announced in a\u00a0LinkedIn post\u00a0on…<\/p>\n","protected":false},"author":0,"featured_media":1472946,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[],"class_list":["post-1472945","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-news","wpcat-1-id"],"_links":{"self":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1472945","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/comments?post=1472945"}],"version-history":[{"count":0,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/posts\/1472945\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media\/1472946"}],"wp:attachment":[{"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/media?parent=1472945"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/categories?post=1472945"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/bugaluu.com\/news\/wp-json\/wp\/v2\/tags?post=1472945"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}