Editorial : A looming financial war between China and the US

【明報專訊】AFTER conflicts over trade and technology, a financial war between China and the US seems to be on the horizon. A US judge has found three large Chinese banks in "contempt of court" for refusing to comply with subpoenas in an investigation into "North Korean sanction violations". One cannot rule out the possibility that Washington will play the same old trick it used in banning Huawei and take aim at the Chinese banks involved. The worst scenario is the cutting off of the banks' access to the US financial system, meaning they cannot undertake transactions in US dollars anymore. In the past, the US has never invoked the laws concerned in handling similar disputes. The latest case marks Washington's attempt to use legal tools in a more aggressive manner to target Chinese banks and companies, which will inevitably accelerate the "disengagement" between the two economies.