U.S. Considering Repeat-Failure Policy of Sanctions-As-Deterrent Against China

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Story at a glance…

  • Anonymous sources told Reuters that the U.S. was considering a sanctions package to deter China.

  • US or UN Sanctions for deterrence have never stopped a nation from acting aggressively.

  • Unlike sanctions on Russia, a broad interruption of economic activity with China would severely damage the U.S. economy.

According to anonymous officials, the Biden Administration is considering a sanctions package to “deter” China from aggressive action against Taiwan.

Sources claimed pressure was mounting on the White House and Congress by Taipei lobbyists, and that equal measures were being pushed in the EU.

After Speaker of the House Nancy Pelosi’s unproductive trip to Taiwan was undertaken despite Chinese diplomats urging against it, the Chinese government produced several responses.

The first was an official white paper that outlined the One China policy as unchanged, apart from the measures China would go to maintain this policy. Previous One China white papers had always mentioned forced unification as the last resort, yet such hesitance was notably absent in the most recent addition, where it simply read that force would be used “if necessary”.

Furthermore, previous editions have said that if Taiwan and China are reunified administratively, no deployment of military would be necessary and then Taiwan can keep its culture and governance—another stipulation left out in the current revision.

Then came some flights of Chinese fighter jets beyond the international sea border between the two countries, which has almost never happened, and the incursion of Chinese unmanned aerial vehicles, which were shot down by Taiwan.

Later in August came the largest military exercises around Taiwan ever seen, performed for “defense” and “blockade” maneuvers.

The U.S. has already sanctioned certain rare aspects of the Chinese economy such as any products that can be traced to the Autonomous Region of Xinjiang, or anything to do with aerospace and defense industries.

But what would happen to the U.S. economy if broader sanctions were applied to China, and would it be possible to prevent them from attempting to reunify the two systems of the One China policy?

PICTURED: “Between Chinas”: an ISS image of the Taiwan Strait at 110 miles width. PC: Stuart Rankin. CC 3.0.

Sanctions on the second-biggest economy

Pelosi’s visit achieved nothing for either party. No trade deals were being discussed, no additional computer chips—Taiwan’s version of gold—were delivered to the U.S. or her allies, and no change in U.S. policy was announced. In short, a U.S. non-diplomat spent millions in taxpayer money to fly to the other side of the Earth to be able to bow and be bowed to.

The U.S. announced a month later another $1 billion weapons sale, and for Congress life moved on.

In response, the cross-strait status quo seems to be changing for the first time in a generation.

While the U.S. is not deeply intertwined with the Russian Federation’s economy, sanctions placed upon it have certainly hurt American consumers more than the Kremlin’s war effort.

Compared to a potential sanctioning of the intertwined Chinese economy, the disruption of economic activity in the U.S. at a time when aggressive interest rate hikes are not bringing the prices of goods down would be far higher.

The sources said that the discussions on the sanctions were in their early stages and didn’t detail possible measures Washington could impose, however they did say the sanctions would, in theory, be organized to “deter”.

No sanctions policy has deterred any aggressive action since the advent of America’s obsession with soft power and economic warfare since the end of World War II.

Most relevant to our times are all the methods the U.S. took to deter Russia from invading Ukraine, which included sanctions, as well as the constant arming of the Ukrainian government with American war material. Ukraine has been among the largest recipients of military aid over the last 5 years.

These measures, if anything, provoked Russia, rather than deterred her, but this is hardly a singular case study.

PICTURED: Nancy Pelosi stands with Taiwan President Tsai Ing-wen.

Who said sanctions deter?

For 40 years, economic sanctions on North Korea have not prevented that nation from continual nuclear weapons build-ups, and the government recently announced they consider preemptive nuclear strikes legal, if they believe their state is in danger. Kim Jong Un also said that the North would never give up their nuclear weapons even in the face of “100 years of sanctions”.

UN Resolution 661 which placed economic sanctions on Saddam Hussein’s Iraq didn’t deter him from further tightening his grip on Kuwait, and neither did the sanctions campaign in the aftermath of the Gulf War deter him from continuing to hold power in the country.

Sanctions in the form of an oil embargo were placed on Imperial Japan during World War II, as a means of deterring them from colonizing much of the Asia Pacific and continuing their war crimes in China. They shortly attacked the U.S. Navy at Pearl Harbor afterwards, and then attacked several other large Asian island nations like the Philippines, Malaysia, and New Guinea, which resulted in millions of deaths.

During the violent breakup of Yugoslavia, sanctions were placed first on Serbia and Montenegro, then called the Federal Republic of Yugoslavia, during the Bosnian War, which failed to deter them from fighting in the later Kosovo War, despite the fact that by then the sanctions had become a total embargo of trade, scientific and cultural exchanges, and travel.

History can produce no witness of an instance where harsh sanctioning has deterred aggressive actions. Experts might argue the reasons, but other experts might argue that nowhere would history repeat itself more clearly than if China decided to take Taiwan by force.

Taiwan is entirely dependent on the importation of fossil fuels for its energy. 11 days of blockade would exhaust the country’s supply of natural gas, which services 35.7% of her energy grid. 39 days would exhaust the gasoline supply.

Taiwan’s miracle microchip industry, the largest in the world, consumes 12.5% of all electricity, and accounts for 38% of the country’s exports.

It would hardly take World War II effort for the Chinese to relegate Taiwan to a third-world country, but the good news is that many experts see a forceful transition of power as very unlikely.

The Joint War Committee (JWC) of insurers based in London, which classifies the world’s waters according to risk, actually don’t rank the Taiwan Straits as a waterway with a heightened risk for shipping. China and Taiwan are each other’s closest trading partner, and China certainly doesn’t benefit from interfering with the production of 60% of the world’s computer chip manufacturing, and 95% of advanced chip manufacturing.

Sanctions on China would be terribly disruptive to the United States. China is currently the nation’s largest goods trading partner with $559.2 billion in total (two way) goods trade during 2020. Goods exports totaled $124.5 billion; goods imports totaled $434.7 billion, and trade in services with China (exports and imports) totaled an estimated $56.0 billion. WaL

 

PICTURED ABOVE: PLAAF Shenyang-11 fighter jets over China in 2020.

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