Written by Michael Thervil
It seems that the only business that America knows is war while the Chinese are in the business of business. But like with any business, China understands when it's time to “take off the white gloves”. Yesterday, China placed a round of sanctions on America, instead of the other way around. Although this isn’t the first time China has evoked sanctions on America, this round of sanctions that China placed on America is significant because of the current temperature of the days and times we’re living in. While America tends to weaponize the use of sanctions and tariffs to coerce other countries to bow to its political will, China is instead utilizing sanctions to defend itself from American aggression on the geopolitical stage.
America has placed sanctions on roughly over 140 Chinese companies on what they call an “Entity List”. While America is weaponizing sanctions and tariffs on the exportation of Chinese goods (Electric Vehicles) and technological services especially when it comes to the manufacturing of semiconductors. China is placing strategic sanctions on essential minerals like germanium, gallium, graphite, and antimony that America imports from China in order to manufacture their nuclear weapons, flame resistant materials, batteries, and night vision goggles. Sources also reported that China has also placed sanctions on America’s ability to import synthetic materials, diamonds. China's sanctions also include separation technology and machinery as well as smelting.
Like nearly all-American sanctions, they tend to fail. The proof to claim is best observed when America placed sanctions on Chinese semiconductors manufactures back in 2023. As America thought it was punishing China, it seems that the sanctions that America applied only strengthened the resolve of China to the point where they started manufacturing their own semiconductors “in house” and quickly closed the gap in the world of semiconductor manufacturing to the point Chinese semiconductors were just as good or better than most other semiconductors on the market.
The question on the minds of everyone following this trade war between American and China is “Does America have the ability to “level up” like the Chinese when sanctions were applied on them. Many people are skeptical because America doesn’t seem to have the same manufacturing capabilities to scale as a nation like China does. For the record this wouldn’t be the first time that China has sanctioned America either.
In a previous VEDA Communication article entitled: “CHINA SANCTIONS AMERICA”, we highlighted the fact that in July of this year, China sanctioned “U.S. Defense Companies such as Raytheon, General Dynamics, Lockheed Martin, and Northrop Grumman Corporation specifically.” These sanctions were applied because of America “violating [China's] “One China Policy” by shipping weapons to Taiwan”. We also pointed out that China applied these sanctions on American weapon manufacturers because they have "ignored its objective and impartial position in the Ukrainian crisis and has engaged in unilateral bullying and economic coercion.”
It seems that America can dish it out but is not ready to take back what they dished out in return. If worst comes to worst, China has the ability to completely shut off all trade to America and bring commerce to America to a grinding halt. But like we stated in the beginning of this article; China is in the business of business. The one thing that we can say and predict is that America is treating China like it’s still operating in the Cold War era even though the world as we know it has completely changed. This shows how out of touch America is with the times. Our prediction here at VEDA Communications is that the sanctions that America has placed on China and Chinese companies will fail and China will rely on their ability to be self-reliant and their sense of self-determination to get through this trade war
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