Western sanctions led Russia to greatly increase trade with Asia, while devastating Europe’s economy. The US tech war against China is damaging its own industry.
by Renate Bridenthal
Part 5 - Western sanctions fuel Asian integration
It is not just Europe that is mobilizing against U.S. protectionism. China, much of Southeast Asia, and some Latin American countries are acting similarly.
The Regional Comprehensive Economic Partnership (RCEP) is a political and economic union created by the Association of Southeast Asian Nations (ASEAN). Larger than the European Union and the U.S.-Mexico-Canada Agreement, RCEP includes China, the Philippines, Laos, Vietnam, Brunei, Cambodia, Singapore, and Thailand, as well as U.S. political allies Australia, New Zealand, Japan, and South Korea.
The Regional Comprehensive Economic Partnership (RCEP) is a political and economic union created by the Association of Southeast Asian Nations (ASEAN). Larger than the European Union and the U.S.-Mexico-Canada Agreement, RCEP includes China, the Philippines, Laos, Vietnam, Brunei, Cambodia, Singapore, and Thailand, as well as U.S. political allies Australia, New Zealand, Japan, and South Korea.
Of course, this pits political and economic interests against each other in some cases, causing tensions that are a feature of blowback to U.S. economic coercion.
The U.S. Congress has also used the financial sector to enforce its policies, imposing secondary sanctions on banks that process transactions with sanctioned parties.
Secondary sanctions are imposed on countries that attempt to trade with the targets of primary sanctions. They are technically illegal, but many countries observe them out of fear of U.S. retaliation.
Importantly, shipping companies and insurers often over-comply with sanctions that may not technically apply, which has delayed shipments of grain and fertilizer that are needed to prevent famine, notably in Africa.
However, blowback looms in global finance, which could eventually erode U.S. power as exercised through the hegemony of the dollar.
The U.S. Congress has also used the financial sector to enforce its policies, imposing secondary sanctions on banks that process transactions with sanctioned parties.
Secondary sanctions are imposed on countries that attempt to trade with the targets of primary sanctions. They are technically illegal, but many countries observe them out of fear of U.S. retaliation.
Importantly, shipping companies and insurers often over-comply with sanctions that may not technically apply, which has delayed shipments of grain and fertilizer that are needed to prevent famine, notably in Africa.
However, blowback looms in global finance, which could eventually erode U.S. power as exercised through the hegemony of the dollar.
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