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China Sanctions America

Written by Michael Thervil

 

Chinese President Xi Jinping


In a stunning turn of geopolitical events, China has decided to flex its geopolitical muscles by sanctioning America. When it comes to sanctioning countries, America has led the charge for many decades, especially when it comes down to international trade and relations. As of late, America has been working hard by weaponizing its power to initiate sanctions on Russia, which is roughly on its 20th round of sanctions since the start of Russia’s Special Military Operation in Ukraine. Now the tables are turning and now it's China that is sanctioning America.

 

The reason for this is because America is being rightfully accused by China for violating it's “One China Policy” by not only shipping weapons to Taiwan, but China is also sanctioning U.S. Defense Companies such as Raytheon, General Dynamics, Lockheed Martin, and Northrop Grumman Corporation specifically. Adding insult to injury, China also decided to sanction these American defense firms because according to China, America has "ignored its objective and impartial position in the Ukrainian crisis and has engaged in unilateral bullying and economic coercion".

 

Moreover, China also stated that because of America selling weapons to Taiwan, it has “seriously violated the one-China principle and joint communiqués between both countries, and seriously undermines China's sovereignty and territorial integrity”. No matter how you look at it, this is a true statement. Even though America doesn’t officially view Taiwan as its “own country” per se, America does treat Taiwan as if it’s not part of China. But there’s a reason for this. And that reason is because America directly benefits from the semiconductor chips that Taiwan produces.

 

America benefits so much from Taiwan chip manufacturers that they struck a deal to build a Taiwanese semiconductor chip manufacturing facility in Arizona. Currently, that manufacturing plant is struggling because according to the Taiwanese, America can’t find enough workers who are smart enough to be employed there for the chip manufacturing process. That says a lot about America and where it stands in the STEM sector.

 

Going back to China sanctioning American businesses, the Chinese have now successfully frozen all and any assets by U.S. Defense Contractors that are operating in China. Moreover, it has been reported that China has frozen the visas of all immediate family members of U.S. Defense Contractors from not only entering the country; but from doing business with other Chinese businesses. China has even gone a step further and stopped any new investments from American Defense Companies in China and it has stopped all American Defense related goods and products from entering the company.

 

For many spectators watching the geopolitical chessboard, China's move to sanction America is symbolic at best. But it’s still a geopolitical move that serves as motivation for other countries to potentially follow suit and place sanctions on America. The question of the day is: will other countries have the courage to place additional sanctions on America?

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