BEIJING, Oct 20 Reuters In a war with the U.S. over Taiwan, China would need to create a global network of companies under U.S. sanctions, seize American assets within its borders, and issue golddenominated bonds, according to Chinese governmentaffiliated researchers studying the Western response to Russia after its invasion of Ukraine.

The sanctions against Moscow have prompted hundreds of Chinese economists, financiers, and geopolitical analysts to examine how China should mitigate extreme scenarios, including loss of access to U.S. dollars, according to a Reuters review of more than 200 Chineselanguage policy papers and academic articles published since February 2022.

In the context of intensified SinoU.S. strategic competition and the Taiwan Strait conflict, we should be wary of the U.S. replicating this financial sanction model against China, wrote Chen Hongxiang, a researcher at a branch of the People39;s Bank of China PBOC in eastern Jiangsu province.

China, he said, should prepare for a rainy day to ensure its financial and economic stability.

The specificity of the scenarios and potential countermeasures are being reported for the first time by Reuters.

In assessing Russia39;s experience, many of the researchers warn that China39;s much larger economy and dependence on advanced foreign technology and commodity imports mean a sanctions fight with the West could be far more destructive. Some doubled down on the view that increasing interdependence could be a…