January 16, 2024
It’s Not Time to Hit China with Financial Sanctions — Yet
U.S. legislators are debating a range of new economic statecraft authorities aimed at managing the strategic competition with the People’s Republic of China. While Congress must move quickly to implement certain measures, such as those addressing risky U.S. outbound capital flows to the PRC, it would be a mistake to push for a full-scale eviction of Chinese entities from the global financial system.
Reaching for the nuclear option now costs the United States important coercive leverage that it may have a greater need for later.
The United States enjoys a robust set of policy tools for imposing national security-based restrictions on economic activity with China. This includes export controls that halt the flow of sensitive technologies, tariffs, and — in some cases — restrictions on the ability of U.S. persons to engage in financial transactions with Chinese counterparts. Of these, financial restrictions are used at a relatively low level, considering the scale of policy challenges that the United States has with China.
Read the full article from The Hill.
More from CNAS
-
U.S.-India Trade Talks Show Progress, but Major Hurdles Remain, Says Strategist
Video
Rachel Ziemba, adjunct senior fellow at the Center for a New American Security, says the U.S. and India are making progress toward a trade deal, driven by shared geostrategic ...
By Rachel Ziemba
-
Putin’s Pressure Point
Commentary
Trump’s handling of Russia diverges sharply from his approach to every other country....
By Edward Fishman
-
Semiconductor Imports and U.S. National Security
Commentary
The Secretary of Commerce has initiated a Section 232 investigation to determine the effects on the national security of imports of semiconductors and semiconductor manufactur...
By Geoffrey Gertz & Caleb Withers
-
AI Diffusion with Paul Scharre
Podcast
Paul Scharre, AI expert and CNAS Executive Vice President, joins Geoff and Emily to talk about Trump’s AI dealmaking in the Gulf, the rescission of the Biden-era AI diffusion ...
By Emily Kilcrease, Paul Scharre & Geoffrey Gertz
