China threatens sanctions against U.S. companies: Is this the future?
Jan 27 (Reuters) – China’s recent threat to impose sanctions on U.S. defense companies that sell arms to Taiwan should come as no surprise to American officials or corporate executives: Washington has been issuing sanctions of these sorts for years. It was only a matter of time before U.S. competitors started copying its tactics.
Regardless of whether China follows through on its threat, Washington needs to be ready for a new normal in which the United States must defend against sanctions as well as impose them.
China is taking a page from the sanctions playbook Washington developed against Iran. Between 2010 and 2015, the United States effectively gave companies a choice: If they did prohibited business with Iran, like buying oil, they would get cut off from doing any business in the United States. Forced to choose between access to the world’s most important financial system and an Iranian market less than 1/30th the size, most companies stuck with Washington and avoided Tehran.
China’s threat mirrors this approach – trying to force U.S. companies to choose between defense sales to Taiwan and access to a Chinese economy that is nearly 20 times larger. While U.S. companies do not currently sell military equipment to China, many U.S. defense contractors do sell civilian passenger aircraft, aviation parts and other civilian equipment in China and could find their ability to continue those sales cut off by Beijing.
pedro 2 hours ago
It was a mistake doing business w China. Greedy bastids will cut off their nose to spite their face.
ksm 6 minutes ago
China’s economy is going down the drain (and the CCP has gone nuts).
Factories are going bankrupt because of shrinking business and huge business debts. People are losing job.
Then obviously, there will not be any “big market in china” that people have been tricked to believe coming.
Saru 5 hours ago
Sounds like Insurance companies should start selling sanction insurance.There is always a way to profit off problems real or perceived…
Victor 4 hours ago
Lets say Washington goes ahead and develops global standards for WHEN to use commercial sanctions against foreign companies and foreign countries, and what type. Will Washington then apply those standards to see if IT followed those SAME standards in the case of Iran ? If it did not, will it compensate Iran for all those years of suffering ?
pl 3 hours ago
these sanctions are meaningless because none of them can export their products to china unless they get special government approval.