China watches warily as Ukraine makes U.S., EU and Japan strengthen their alliance

Since taking office last year, President Joe Biden has pursued a strategy of restoring relationships with allies to put pressure on Beijing. The Russian invasion of Ukraine nearly two weeks ago showed what those allies can do. For China, the speed and severity with which the U.S. and its allies sanctioned Russia is a warning sign that could guide future economic and foreign policy.

Chinese officials have increased efforts to buttress their country's self-reliance since President Donald Trump sanctioned telecommunications giant Huawei and slapped tariffs on billions of dollars' worth of Chinese goods. But Trump did all that singlehandedly — while simultaneously damaging ties with Europe and provoking uncertainty among U.S. allies in Asia. The response to Ukraine has been anything but a go-it-alone move by the United States.

"Given the success that the U.S. has had in coordinating the financial sanctions and export controls not just with Europe but also with Japan, a key player in tech value chains — this is extremely alarming for China," said Reva Goujon, senior manager for the China corporate advisory team at Rhodium Group.

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