‘Tit-for-tat response’? Why China unleashed fresh sanction, export curb blitz
Beijing and Washington are ratcheting up sanctions and export controls to gain leverage ahead of crucial negotiations, analysts said
China and the United States have unleashed a barrage of economic sanctions and export control measures in recent days – and the tit-for-tat exchange is unlikely to end soon as the two sides seek leverage in ongoing talks over trade and technology issues, analysts said.
On Thursday, Washington imposed sanctions on a slew of Chinese entities, including an independent refinery and terminal, alleging they were involved in purchasing or shipping Iranian oil.
Rajiv Biswas, CEO of research firm Asia-Pacific Economics, said the flurry of measures was ultimately driven by geostrategic and military rivalry between the US and China and would continue even as the two sides sought to agree a trade deal.
“Despite the latest round of sanction measures, the US and China will continue with trade negotiations to try and reach a wide-ranging bilateral trade deal,” he said.
“However, the US-China sanctions wars are likely to continue, notably for advanced defence technologies, with China also likely to continue imposing restrictions and licensing requirements for exports of rare earths.”
Other analysts saw the recent machine gun burst of bilateral curbs and sanctions as a series of tit-for-tat exchanges as Beijing and Washington prepare for a possible meeting between Presidents Xi Jinping and Donald Trump on the sidelines of the Asia-Pacific Economic Cooperation (Apec) summit in South Korea later this month.
Beijing has grown more confident about weaponising its dominance over the rare earth supply chain