By Clifford Hwang
For quite some time, China’s economic presence was mainly found in international trade. More recently, China has become a major player in international finance. China invests aggressively to promote its currency and secure resources, and soon, the renminbi is expected to be anointed as a global reserve currency. Amongst the many reasons for the rise of China’s financial prowess, one may be due to the international sanctions the United States and the European Union have placed on countries such as Russia and Iran. China is never the target of sanctions, and it usually reluctantly follows the U.S. and the EU sanctions; it benefits when the targets of the country must turn to China for an economic lifeline. That is when China is able to benefit handsomely by negotiating very favorable terms. More on this perspective can be read here.