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
-
Implications for Partners of the AI Diffusion Framework with Emily Kilcrease
Podcast
Francesca Ghiretti talks with Emily Kilcrease senior fellow and director of the Energy, Economics, and Security Program at the Center for a New American Security (CNAS), and c...
By Emily Kilcrease
-
America First Trade Policy and Trump's First 100 Days
Podcast
Emily and Geoff dive in on the unfinished business Trump is inheriting and unpack what we learned from the America First Trade Policy executive memo. Plus we share a few thoug...
By Emily Kilcrease & Geoffrey Gertz
-
Sharper: Trump's First 100 Days
Commentary
Donald Trump takes office in a complex and volatile global environment. Rising tensions with China, the continued war in Ukraine, and instability in the Middle East all pose s...
By Charles Horn
-
Ziemba: Trump to Rely on Gulf Partners to Diffuse Tension
Video
After 15 months of fighting, ceasefire has taken effect between Israel and Hamas, ahead of President-elect Donald Trump's inauguration. Rachel Ziemba, Founder of Ziemba Insigh...
By Rachel Ziemba
