Russia needs China at this point. It is a risky position to be in. While China is happy to partner with Russia it will not be because they support Russia ideologically, but because they see it as economically advantageous to do so. The minute it stops being in China’s best interest is the minute the partnership cedes. China has options. Russia doesn’t.
> units stopped issuing U.S. dollar-denominated letters of credit for purchases ... Yuan-denominated letters of credit are still available for some clients [1]
Sounds about right; ~We're still willing to do busineses with you, but just not in USD.
I think they are happy to watch and see how it goes. How the international community responds and plan accordingly.
China has a more difficult invasion if they choose to, but are likely not as impacted by sanctions. On the other hand the West sees Taiwan as of strategic importance, more so than Ukraine, and may respond accordingly. Military interference is likely not off the table.