TAIPEI (Taiwan News) — The war in Ukraine and global economic sanctions levied against Russia could help raise the profile of the Chinese yuan against the U.S. dollar, a senior Taiwanese security official said on Monday (March 28).

Moscow has said it will need assistance from Beijing as it grapples with crippling sanctions levied against it in response to the invasion and that it will use Chinese yuan from its foreign exchange reserves as sanctions block its access to its dollar and euro reserves, Reuters reported.

China has long sought to lessen the dollar's dominance of the global financial system, and the Ukraine war could boost the yuan’s use, Reuters cited Taiwanese National Security Bureau Director-General Chen Ming-tung (陳明通) as saying while answering questions in the Legislative Yuan.

“Whether in renminbi (yuan) trade or the currency issuance system, this is an opportunity that must be taken” by Beijing, Chen said.

Chen said the war could improve China-U.S. relations if Beijing chose to align with Washington the same way it did after the Sept. 11, 2001, terrorist attacks, according to Reuters. “The Ukraine-Russia war is maybe another 911-style opportunity,” said Chen.

China has repeatedly said it opposes economic sanctions against Russia and that it will maintain normal economic and trade relations with the country, per the report. China has declined to condemn the war against Ukraine or call it an invasion.