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
-
Tariffs & and the Defense Industrial Base with Becca Wasser, plus what’s new in the U.S.-China trade war
Podcast
Geoff and Emily debrief on the latest news in the U.S.-China trade talks. Becca Wasser, senior fellow and deputy director of the CNAS defense program, joins to talk about what...
By Emily Kilcrease, Geoffrey Gertz & Becca Wasser
-
U.S.-China Talks Continue | Bloomberg: Asia Trade
Video
Bloomberg TV is live from Tokyo and Sydney with Shery Ahn and Haidi Stroud-Watts, getting insight and analysis from Center for a New American Security’s Emily Kilcrease on U.S...
By Emily Kilcrease
-
Tell Me How This Trade War Ends
Commentary
Against this backdrop, Trump has turned the United States into a revisionist power seeking to shatter what remains of the economic order....
By Emily Kilcrease & Geoffrey Gertz
-
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
