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 Cost of Economic War
Podcast
Sanctions, not bombs, have been the weapon chosen to take on the Putin regime. BBC speaks with macroeconomist Rachel Ziemba about the effectiveness of modern economic statecra...
By Rachel Ziemba
-
Harnessing the Metaverse: States of All Sizes
Commentary
With the innovation of the metaverse and its capacity to support different methods of social interaction outside of our physical universe, there is opportunity for states to d...
By Michael Greenwald
-
Want to Help Taiwan? Support a Muscular Japan
Commentary
Japan's political leadership must fight to sustain Abe's spirited internationalism, despite mixed political support at home....
By Daniel Silverberg
-
Sanctions, Cyber, and Crypto: How Pyongyang Can Exploit the War in Ukraine
Commentary
If Russian forces completely isolate Donetsk and Luhansk from the rest of Ukraine, North Korea could expand its sanctions evasions campaigns in eastern Europe....
By Jason Bartlett
