China Warns West Not To Enforce Sanctions Against Russia

Tyler Durden's picture

"Sanctions could lead to retaliatory action, and that would trigger a spiral with unforeseeable consequences," warns China's envoy to Germany adding that "we don't see any point in sanctions." On the heels of Merkel's warning that Russia risked "massive" political and economic damage if it did not change course, Reuters reports ambassador Shi Mingde urged patience saying "the door is still open" for diplomacy (though we suspect it is not) ahead of this weekend's referendum. Russia's Deputy Economy Minister Alexei Likhachev responded by promising "symmetrical" sanctions by Moscow. So now we have China joining the fray more aggressively.

Via Reuters,

China's top envoy to Germany has warned the West against punishing Russia with sanctions for its intervention in Ukraine, saying such measures could lead to a dangerous chain reaction that would be difficult to control. In an interview with Reuters days before the European Union is threatening to impose its first sanctions on Russia since the Cold War, ambassador Shi Mingde issued the strongest warning against such measures by any top Chinese official to date.

 

"We don't see any point in sanctions," Shi said. "Sanctions could lead to retaliatory action, and that would trigger a spiral with unforeseeable consequences. We don't want this."

 

...

 

Using her [Merkel's] toughest rhetoric since the crisis began, she warned in a speech in parliament on Thursday that Russia risked "massive" political and economic damage if it did not change course in the coming days.

 

Russia's Deputy Economy Minister Alexei Likhachev responded by promising "symmetrical" sanctions by Moscow. But Shi urged patience, saying the door for talks should remain open even after a referendum on Sunday in which Ukraine's southern region of Crimea could vote to secede and join Russia. Merkel and other western leaders have denounced the referendum as illegal and demanded that it be canceled.

 

"We still see a chance to avoid an escalation. The door to talks is still open. We should use this possibility, also after the referendum," Shi said.

After the Referendum, so when Russia is already in control. More importantly, China joins the fray with threats over West's sanctions. Perhaps BTFWWIIID will make a re-appearance any minute now.

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maskone909's picture

no wonder the $USD is about to break support.  are you currency guys seeing this too?

Occident Mortal's picture

Clear East // West divide appearing now.

 

This is all starting to feel like an itchy and scratchy cartoon.

Fortunate Fool's picture

Sanctions could lead to retaliatory action, and that would trigger a spiral with unforeseeable consequences. We don't want this."

 

If the economy goes south as a result of economic sanctions, China has a lot to fear... The PCC's power can only hold as long as the economy is good. Should that change and social unrest in a 1.3b people country will quickly become unmanageable...

 

Countries don't have friends, they have interests. China is no friend to Russia

rubiconsolutions's picture

Boris - Your Chinese is spot on. That KGB training paid off very well.

Levadiakos's picture

Putin is playing Tsar Nicholas II in this 100 year sequel

hobopants's picture

Hmmm, I don't know about that. Nicholas 2.0 was a bit of a bungler, Putin is many things but he is a pretty sharp guy.

Troll Magnet's picture

Oh yeah???

Well, um, well, bring on Putin because we have Moochelle and Valerie who are tough guys! 

rtalcott's picture

I don't think so...you need to look at that history again...however barry is doing a great Wilhelm II.

silvermail's picture

If Putin plays the role of the king, then Obama plays the role of jester.

Ifigenia's picture

"Wi no wan nofu king san xiun."

Yeah, you are right, Boris, but if Obama could xi to nan toki holy fok, it would come out fine for us

morning's picture

social unrest is not in the interest o the chinese people, specially in rural areas where everything works well treacled. and cities are much too cosmopolitan, loaded with corporate types.

caustixoid's picture

There's always a short-term cure for social unrest: war.  The Chi-coms will sacrifice all to remain in power.  They also won't let Russia go down and be the last remaining power facing ZATO.   I hope the game theorists of ZATO have a "10th man" in the room questioning the glorious plan to rule the world, 'cause the variables at play have become dangerously unpredictable.

Urban Redneck's picture

War is actually one of the traditional medicines used to treat Social Unrest...

Ifigenia's picture

huh... are the 1% using it every time they are caught?

No wonder , Afghan war still on since ......2001

morning's picture

social unrest is not in the interest o the chinese people, specially in rural areas where everything works well treacled. and cities are much too cosmopolitan, loaded with corporate types.

angel_of_joy's picture

China has an internal market of over 1 billion people ready to consume.

US doesn't ! However, consumer spending still makes about 70% of US GDP... so its economy sucks badly. They (the West) are masking the economic depression, by issuing boatloads of fresh money (currency AND credit) backed up by NOTHING...

The West is totally fucked, once Russia and China (and maybe India) start asking for gold for their resources / products / services.

Game over !

StacksOnStacks's picture

Clear East // West divide appearing now.

 

Sounds like Biggie vs. Tupac.

CrimsonAvenger's picture

I think it sounds more like Bugs Bunny versus Elmer Fudd. And a hint: We're not the wascally wabbit.

"Be vewy, vewy quiet. I'm hunting viowaters of intewnational waw."

Seer's picture

It's regional positioning, more emphasis on physical location than ideology (though individual areas themselves are more likely more closely aligned to a particular ideology).  The "NWO" stuff is less physical, virtual.

camaro68ss's picture

Keep heading east until your hat floats China, we have printers and we have the Bernanake, I mean the Yellen.

Winston Churchill's picture

The FedRes can't print anything but dollars.

Thats the the US's achilles heel, not UST's per se.

All the eastern axis needs to do is demand payment in a combo of Euros and gold,

and dollars will start flooding back to the US.

Unknown User's picture

Nah. They are a part of a worldwide-banking-cartel. They can print anything except gold bricks.

Winston Churchill's picture

Game theory suggests a different outcome.

The owners of the Cabal would rather keep some, rather than none.

morning's picture

yep

long audusd
short usdcad
short eurusd @1.3970
long swissie

oil to 92 (manipulated) then up and away

Big Brother's picture

I close my long swissie at .8705 this morning.

Good luck with your short on the EURUSD.  That one just broke through the descending trendline on the weekly.  Evidentally you've hedged by going short USDCHF.  It should get interesting when EURCHF gets around 1.20000.  The trades get to be 99.9999% long and the RBS short.

I'm looking for a retrace to go long EURUSD.

Also long NZDUSD @ .8450 & short GBPUSD @ 1.6655.

unrulian's picture

I'm long CuPBCu, Tin, AuWAu

XAU XAG's picture

Two kids playing

 

1st kid............My dad's bigger than your dad

 

2nd kid...........How would you know......you've never met my dad!

 

1st kid...........Your mum said!

max2205's picture

Got the feeling Barry will schedule a tee time many timezones away from DC just in case?

hungarianboy's picture

Finally China starts to talk. Very correct of them to support the Russian Federation.

franzpick's picture

A China warning? That should be worth a down day of at least 300 points.

This may be the opportunity for the long-silent Mr. Market to take the podium and finally explain to our dangerously depraved and incompetant Mr. O and his political clowns Valerie J., John K., Victoria N., Martin D., and their partisan 'American' and EU accomplices, just how reckless and dangerous is their gunboat diplomacy approach to foreign policy...they can't print their way out of this debacle, and their version of the fed's 'open mouth' policy is bringing us closer to war  every time they talk.

I like to watch the market responce to this unfolding tragedy here:

http://www.investing.com/indices/us-30-futures-advanced-chart

Flamingoo's picture

Yes USD looks very week. Against EUR it has broken dawn its trendline going vack to 2008.

But USD could come back if the Ukrain-crises escalates...... That would also mean a big move down for stock marked.

 

 

 

 

rotagen's picture

Thank your mythological god for China, for postponing the kind of six-pointy flag of david, banker infested slag-heap of slavery we're all headed for.  Thank non-existant god for the not-yet-overt forementioned slavery we are all enjoying in this age.

drinkin koolaid's picture

bullish!!!!!!!!!!!!!!!!!!!!!!

Thought Processor's picture

 

 

 

Ruh Ro.......

 

Looks like the other players are ant'ing up into this poker match.  Take your seats gentleman.  

McMolotov's picture

There are obviously some behind-the-scenes assholes who are goading the US into this mess.

It puts the sanctions on Putin or else it gets the hose again.

john39's picture

how many guesses does it take to nail who owns the U.S. congress...

nowhereman's picture

OK, I'll bite.  If it ain't the Isrealis it's the Saudis.

Chewybunny's picture

If it ain't the Saudis it's anyone who's got a buck.

 

SunnyDD's picture

Hahaha, Nope, It is USSK.

 

Gumbum's picture

Goading the US into this mess?

I think it's fair to assume that the US started this whole mess. Spreading "democracy" and inserting leaders that are easier to make deals with (neo-nazies in this case)

How fast the world forgot about the taped conversation with Victoria Nuland talking about who to insert as new leader. It somehow got twisted to be about the "F the EU" part. Masterly spin I might add.

McMolotov's picture

My point is that the people we see as "in charge" of the US aren't actually in charge at all; they're owned by someone else and following orders from higher up.

They're errand boys, sent by grocery clerks, to collect a bill.

pods's picture

Geopolitical clusterfucks are so much fun.

pods

El Vaquero's picture

Fun like eating and shitting razor blades indeed!

McMolotov's picture

Until they become global thermonuclear clusterfucks.