Not long ago, the G7 held a summit in Italy, and the leaders of various countries reached a consensus on the illegal misappropriation of Russia's frozen sovereign assets to aid Ukraine. Against this background, the Council of the European Union recently announced that the EU has decided to transfer the first €1.4 billion in interest generated by Russia's frozen assets to the Ukraine Aid Fund.
It is understood that this batch of funds will be used to purchase related products in Germany, Denmark, the Czech Republic and other countries to provide all-round assistance to Ukraine. Now that the matter is over, I will briefly say my personal opinion. From my point of view, the illegal misappropriation of Russia's frozen assets by the G7 and the European Union to aid Ukraine is actually doomed, and the reason why it has been delayed for so long to be truly implemented is that on the one hand, European and American countries have had a lot of concerns before, and on the other hand, it has a lot to do with the current unfavorable war in Ukraine.
In the past two years or so, European and American countries have suffered the negative impact of the Russia-Ukraine conflict on the one hand, and on the other hand, they have continued to use taxpayers' money to aid Ukraine. This model is not destined to be a long-term solution, so they started the idea of Russia's frozen sovereign assets and used Russian money to aid Ukraine to fight Russia, is there anything more cost-effective than this? I'm afraid not.
After all, the current international credit system was built by the West over hundreds of years, and today's practice is tantamount to openly breaking the credit system established at the beginning, which may have little impact in the short term, but in the long run, the West is bound to suffer a serious backlash. This is tantamount to a bad start, telling the rest of the world that once there is a conflict with the West, as the conflict continues to worsen, then the West is likely to directly grab the sovereign assets of other countries. If even the security of national assets cannot be guaranteed, then the security of the assets of enterprises and individuals cannot be guaranteed, let alone guaranteed.
Now, the game between China and the United States is becoming more and more intense, and it is very likely that the Western tactics against Russia will be used against China one day in the future. Then in the face of this potential danger, we should also prepare in advance. First of all, China's current foreign exchange reserves are $3 trillion, of which more than $700 billion are US bonds. If the contradictions between China and the United States deteriorate in an all-round way, I am afraid that these US bonds will not be recovered, and the United States may announce that it will unilaterally admit the debts held by China, so it needs to continue to reduce its holdings of US bonds, but it cannot sell them on a large scale, which is not economically beneficial to the country.
Second, on the premise of reducing US debt, other foreign exchange reserves should be exchanged for strategic resources as much as possible, and then these resources should be repatriated to China for sustainable development. To put it bluntly, this money is just a series of figures, and it is all on overseas accounts, and it will be useless as soon as the United States freezes it, and only by converting the money into real resources can it be useful to the country.
Finally, prepare for countermeasures against the West. For example, if the West freezes China's overseas assets, do we have an emergency procedure to immediately freeze the West's assets in China, we need to have a set of legal and convenient procedures, and once an extreme situation occurs, the relevant procedures can be initiated immediately, so as to protect the national interests as much as possible and reduce losses for the country.