• About Us
  • Careers
  • Brand Partnerships
TFI Official Merchandise
TFI English
TFI हिन्दी
Friday, September 22, 2023
TFIGlobal
TFIGlobal
Right Arm. Round the World. FAST.
No Result
View All Result
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean
TFIGlobal
TFIGlobal
No Result
View All Result

Chinese insurers could go bankrupt due to the Russia-Ukraine war

Sanbeer Singh Ranhotra by Sanbeer Singh Ranhotra
March 5, 2022
in Geopolitics
Reading Time: 3 mins read
0
Chinese
696
VIEWS
Share on FacebookShare on Twitter

China’s state insurers could soon be going bankrupt. Why? you might ask? Well, as we all know, the Crimean annexation of 2014 really brought Moscow and Beijing closer. Their economies and financial systems have a large exposure to each other. Now, with the Russians mounting an invasion of Ukraine and the West slapping Moscow with sanctions, that kind of financial exposure is sufficient to wreck Beijing. You see, China knows it is in a very precarious situation. It cannot openly shun Russia despite Xi Jinping desperately wanting to.

So, China is panicking. According to Reuters, China has told top state insurers to perform urgent checks on their exposure to Russia and Ukraine. At least two large state-owned insurance firms have been asked by regulators to conduct internal checks on their business and investment portfolios’ exposure to Russia and Ukraine.

Also Read

‘To hell with EU’ 70,000 Czechs Express Support for Russia

Putin’s Master Plan to Strengthen Wagner PMC is Out in Open

According to the Reuters report, one of the regulatory authorities has asked a state-owned insurer to “urgently” check and report projects “involved in dealings between Ukraine and Russia”. Another company received an urgent directive from the regulator this week to check the firm’s exposure to the two countries and submit a report by Friday.

Interestingly, the insurers that have been told to conduct the reviews are maintaining an eerie silence, and so are China’s regulators. What this really shows is that their speaking could make things much worse than they already are. Efforts seem to be afoot to minimise knowledge of China’s exposure to Russia. That, however, will not actually cut down China’s exposure to the sanctions-ridden economy of Russia.

The CCP has therefore descended into a phase of wishful thinking, where it considers hiding its exposure to Russia as the best bet against suffering severe losses due to its insurers’ involvement in Russia. Chinese companies have widespread interests in Russia. These are in turn, insured by state-owned insurance companies. Therefore, an unwinding of such insurance firms could have a cascading effect across China’s business institutions.

Regulators have also asked about Chinese state insurers’ exposure to debts of Russian state-owned enterprises or sovereign debt; apart from calling for details of involvement in sensitive industries such as oil and gas, coal mining or processing to be reported.

The scope of the review also includes territories in Donbass region of Eastern Ukraine that are claimed by Russia.

Read more: Russia used the Ukraine crisis to demolish the Chinese BRI and develop its own Northern Sea Route

In a development that has brought to light the deterioration of ties between Russia and China in the backdrop of the invasion of Ukraine, a China-led development bank has suspended all business with Russia and Belarus. The Asian Infrastructure Investment Bank (AIIB) said it put all activities related to the two countries on hold in light of “the evolving economic and financial situation”.

You must remember that the war in Ukraine has cost China a $75 billion BRI project across Eurasia. That was only the beginning of financial costs which are to be incurred by China due to Russia’s offensive in Eastern Europe.  Beijing realises that the war in Ukraine is having unforeseen economic consequences for the Chinese economy and interests. The review of state insurers’ exposure to Russia, therefore, is a way for Beijing to get wind of what kind of losses it should expect in the foreseeable future.

If the exposure of such insurers is very large, they will end up going bankrupt.

Tags: ChinaRussiaUkraineVladimir PutinVolodymyr Zelensky
ShareTweetSend
Previous Post

Actor and musician Ari Stidham Biography, Career and Life

Next Post

Syria claims that the US is transferring Daesh terrorists to Ukraine to fight Russia

Also Read

Putin’s Master Plan to Strengthen Wagner PMC is Out in Open

Putin’s Master Plan to Strengthen Wagner PMC is Out in Open

September 21, 2023
Chanting ‘Ukraine, Ukraine’ hasn’t been well for ICC

Chanting ‘Ukraine, Ukraine’ hasn’t been well for ICC

September 16, 2023
The Drug Bust of Justin Trudeau in India which Ottawa is probably hiding

The Drug Bust of Justin Trudeau in India which Ottawa is probably hiding

September 15, 2023
‘Russia is better’ Vietnam swiftly cancels Biden’s Friendship Proposal

‘Russia is better’ Vietnam swiftly cancels Biden’s Friendship Proposal

September 14, 2023
Load More

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms of use and Privacy Policy.
This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

  • Trending
  • Comments
  • Latest
The Drug Bust of Justin Trudeau in India which Ottawa is probably hiding

The Drug Bust of Justin Trudeau in India which Ottawa is probably hiding

September 15, 2023
Drugs for Sexual Pleasure? Trudeau launches his most Abhorrent Scheme

Drugs for Sexual Pleasure? Trudeau launches his most Abhorrent Scheme

July 11, 2023
3 possible reasons why Sophie dumped Justin

3 possible reasons why Sophie dumped Justin

August 3, 2023
Suez Anxiety? Biden Threatens Egypt as it joins BRICS

Suez Anxiety? Biden Threatens Egypt as it joins BRICS

September 19, 2023
CIA and FBI have been modifying Wikipedia articles since 2007, admits Wiki’s co-founder

CIA and FBI have been modifying Wikipedia articles since 2007, admits Wiki’s co-founder

August 3, 2023
Ukrainian Coal Enters EU. But this Gives Unexpected Satisfaction to Putin

Ukrainian Coal Enters EU. But this Gives Unexpected Satisfaction to Putin

September 22, 2023
‘To hell with EU’ 70,000 Czechs Express Support for Russia

‘To hell with EU’ 70,000 Czechs Express Support for Russia

September 21, 2023
Trudeau’s Attempt to Make India a ‘Pariah’ was a Tragic Flop

Trudeau’s Attempt to Make India a ‘Pariah’ was a Tragic Flop

September 21, 2023
Zelensky Commits Yet Another War-Crime in Donbas

Zelensky Commits Yet Another War-Crime in Donbas

September 21, 2023
Exit Door Opens for Trudeau! Dominic LeBlanc to Lead Liberals? 

Exit Door Opens for Trudeau! Dominic LeBlanc to Lead Liberals? 

September 21, 2023
Youtube Twitter Facebook
TFIGlobal
  • About us
  • Contact Us
  • Terms of use
  • Privacy Policy

©2023 - TFI MEDIA PRIVATE LIMITED

No Result
View All Result
  • Premium
  • Indo-Pacific
  • Americas
  • Canada
  • Indian Subcontinent
  • West Asia
  • Europe
  • Africa
  • The Caribbean

©2023 - TFI MEDIA PRIVATE LIMITED

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In

Add New Playlist

Follow us on Twitter

and never miss an insightful take by the TFIGlobal team

Follow @tfiglobal
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. View our Privacy and Cookie Policy.