IMPRI Team In the backdrop of the ongoing conflict between Russia and Ukraine, #IMPRI Center for International…
If de-dollarization occurs, the impact will be felt wide and far. Severe sanctions are a double-edged sword which will impact every nation.
India has been under immense diplomatic pressure over the war in Ukraine with coinciding visits by Daleep Singh (US Deputy National Security Advisor for International Economics), Liz Truss (UK Foreign Secretary) and Sergey Lavrov (Russian Foreign Minister).
The Ukraine crisis has emerged as another major challenge and instigator for the ongoing transition in the much-stressed global order or disorder depending on the way one looks at it. The Russian invasion or ‘special military operation’ as Moscow terms it, was a combination and culmination of the ideological contest, political beliefs, real politics and disregard for genuine concerns, entitlement and abdication of diplomatic paths. It was often perceived that the next big war would happen in Asia as the unbridled growth of China and its military-economic ambitions would herald a situation where confrontation was the eventual outcome.
With the Russian invasion of Ukraine, similarities are being drawn towards an impending Chinese military occupation of Taiwan. The 4 February joint statement between Russian President Vladimir Putin and Chinese President Xi Jinping mentioned their respective positions in Ukraine and Taiwan. China’s social networking sites equated to the two cases of Ukraine and Taiwan.
Sanctioning China would mean shutting down large swathes of global production, and if Chinese supplies are halted because of such sanctions, inflation would really go through the roof .