China is closely monitoring the effects of Western sanctions on Russia to prepare for a possible invasion of Taiwan, The Wall Street Journal reported.

China has studied Russia’s attempts to mitigate sanctions, such as using non-Western-owned tankers to bypass oil price caps and sourcing Western goods through ex-Soviet republics. However, replicating these strategies on a larger scale would be far more challenging for China’s economy.

China has sent officials to the Russian central bank to study the effects of Western sanctions for a better understanding of how it would be affected if it were to invade Taiwan.

China’s $3.3 trillion in reserves and advanced economic tools put it in a different position than Russia, whose energy dominance provided a more direct sanction-resistant strategy

An interagency group set up by China in the first months after the start of the Russian full-scale invasion of Ukraine is studying the impact of sanctions and regularly preparing reports for the country's leadership.

An interagency group set up in the wake of the Ukraine invasion has been reporting back to Beijing with lessons it can use in case of war and Western penalties.