Image credit: SeongJoon Cho/Bloomberg/Getty Images
November 16, 2018
China and the EU Are Growing Sick of U.S. Financial Power
This month, the United States imposed on Iran its most draconian round of sanctions yet. These measures made clear something the global community has long known: When it comes to international finance, Washington sets the rules for others to follow. Though some governments, led by the European Union, have announced initiatives to break free of this U.S. dominance, their policies will likely fail. Less publicized trends, however, are already eroding U.S. financial power and may make aggressive U.S. sanctions policies untenable.
When U.S. President Donald Trump announced in May that he would reimpose sanctions on Iran lifted under the 2015 nuclear deal, the effect was swift. Companies began to comply, independently of their governments’ stances toward Tehran. Even as the EU moved over the summer to make it illegal for its companies to comply with the new U.S. sanctions, firms were already turning away from Iran.
Read the full article in Foreign Policy.
More from CNAS
The Unintended Consequences of Economic Sanctions
Economic sanctions are being used more and more often but also face more questions of effectiveness, especially as they are used on larger and larger targets. The recent anniv...
By Rachel Ziemba
Volkswagen, then Stellantis: Billions for battery plants, but little on mines for raw material
Canada’s critical minerals strategy has large aspirations, but these plans will go unrealized without a higher degree of focus and funding....
By Rachel Ziemba, Giancarlo Da-Re & Matthew Funk
Incentivizing Whistleblowers to Combat Sanctions Evasion
Although misguided patriotism drives many Russian intelligence officers to support President Vladimir Putin’s war machine, money can persuade sanctions-evasion enablers — espe...
By Alex Zerden & Arshan Barzani
The Role of Investment Security in Addressing China’s Pursuit of Defense Technologies
Summary of Testimony Chairman Bartholomew, Vice Chairman Wong, and Commissioners, thank you for the opportunity to provide testimony before the Commission.1 A summary of the r...
By Emily Kilcrease