Bessent: I asked about 200% secondary sanctions on China at G-7

Bessent: I asked about 200% secondary sanctions on China at G-7

China has taken swift action against two European Union (EU) banks in response to recent sanctions imposed by the EU. The move underscores escalating trade and diplomatic tensions between China and the EU. Lithuania’s UAB Urbo Bankas and AB Mano Bankas have been barred from conducting transactions or cooperating with organizations and individuals in China [1][2].

The sanctions are a response to the EU’s 18th package of sanctions against Russia, adopted in July. This latest package also imposed restrictions on two Chinese banks, which are accused of links to Russia’s military industry. China has firmly opposed these sanctions, viewing them as an extraterritorial application of sanctions [2].

Meanwhile, U.S. trade officials are set to meet with their Chinese counterparts within the next two to three months to discuss the future of the economic relationship between the two countries. Treasury Secretary Scott Bessent, speaking on Fox Business Network's "Kudlow," noted that the U.S. will need to see significant progress on fentanyl flows before considering a reduction in tariffs on China [3].

These developments highlight the complex geopolitical landscape that is influencing global trade dynamics. Investors should monitor these ongoing negotiations and potential retaliatory actions, as they could impact market stability and economic growth.

References:
[1] https://www.tradingview.com/news/te_news:477376:0-china-bans-two-eu-banks-in-retaliation-for-sanctions/
[2] https://www.lrt.lt/en/news-in-english/19/2642371/china-sanctions-two-lithuanian-banks-in-retaliation-for-eu-measures
[3] https://www.newsmax.com/newsfront/scott-bessent-china-trade/2025/08/12/id/1222234/