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
-
What if 'America First' Appears to Work? With Tom Wright
Podcast
Tom Wright joins to talk about his recent article, “What if 'America First' Appears to Work?" about the Trump administration’s “might makes right” approach to foreign policy, ...
By Emily Kilcrease & Geoffrey Gertz
-
Economic Security in North America
Reports
Executive Summary The United States, Mexico, and Canada Agreement (USMCA) negotiated during President Donald Trump’s first term includes a novel review clause. By July 2026, t...
By Emily Kilcrease & Geoffrey Gertz
-
Hearing on the Operation of the Agreement between the United States of America, the United Mexican States, and Canada
Congressional Testimony
Thank you for the opportunity to provide testimony today. My remarks will focus on the role that the U.S.-Mexico-Canada Agreement (USMCA) plays in advancing America’s strategi...
By Emily Kilcrease
-
Video
Indo-Pacific Security / Energy, Economics & Security
North Korea’s Provocations, Power Plays, and Shifting AlliancesTensions on the Korean Peninsula have reached a new and dangerous threshold. President Lee Jae Myung is warning of a real risk of accidental military clashes, as the situation...
By Dr. Go Myong-Hyun
