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
-
BBC Business Today: China Defends Rare Earth Export Controls amid Tensions with USA
Video
Senior Fellow and Director of the Energy, Economics, and Security Program Emily Kilcrease joined BBC to discuss rare earths minerals and the US-China relationship. One of the ...
By Emily Kilcrease
-
Why the Latest U.S.-China Tech Fight May Be the Biggest Yet
Podcast
Tensions between the U.S. and China are inflamed yet again — with the tech sector in the crossfire. In the latest move, Beijing has threatened to restrict the trade of rare ea...
By Liza Tobin
-
Export Controls and U.S. Trade Policy: Making Sense of the New Terrain
Commentary
This article was originally published in Just Security. U.S. export controls are evolving from a narrow national security tool to a broader trade policy instrument, reflectin...
By Geoffrey Gertz & Thomas Krueger
-
Oil Prices Reliant on Chinese Demand
Video
Oil fell for a second session as the market weighed a looming glut and the possibility for an end to the war in Gaza. Rachel Ziemba, adjunct senior fellow at the Center for a ...
By Rachel Ziemba
