“One of the key factors for conducting cross-border transactions between Chinese and Belarusian enterprises is a reliable payment system. After the adoption of the US and EU sanctions, the number of payment rejections from Belarus to China has increased, thus complicating shipments of technological equipment for the Belarusian industrial complex.” “Another approach to circumvent sanctions is to join or create a separate dollar-free payment system. Connection of Belarusian banks to China’s national payment system CIPS proved to be unsustainable after major Chinese bank popular with Belarusian importers has suspended payments via CIPS due to SWIFT payment system pressuring China’s CIPS by requesting information on the volume of financial transactions with Belarus and Russia. The most promising alternative to CIPS is the BRICS Pay – a BRICS-backed project of a decentralized and independent payment system rivaling SWIFT. Since Belarus has become a BRICS partner state in 2024, in case of a successful BRICS Pay implementation together with Belarus’s full membership in BRICS, financial transactions between Chinese and Belarusian companies could be carried out without the threat of additional sanctions.” “Conducting mutual settlements in the national currency can also be considered as one of the viable solutions to ease international sanctions’ pressure. By the end of 2025, major Belarusian bank VTB has increased its payment volume to China by 60 percent. In addition, Belarusian government started creating regulatory framework and specialized software to introduce the digital Belarusian ruble, which is likely to be used as a tool for executing payments with Chinese banks using China-led mBridge cross-border digital currency platform. This poses certain challenges, since settlements will most likely be made in Chinese yuan due to Belarusian ruble being a closed domestic currency, leading to appreciation of the yuan on Belarusian market and making Belarusian goods more expensive.”
https://chinaobservers.eu/china-belarus-trade-relations-mismatched-expectations-same-challenges/