US Sanctions Threats Against China Lack Credibility
An opinion piece argues that US threats to impose secondary sanctions on Iran's trading partners, including China, are not credible due to America's financial fragility and China's economic resilience. The US has imposed sanctions on Iran for decades and now aims to target Iran's trading partners, with China being the main one. The article notes that since President Donald Trump initiated the trade and tech war, China has managed its property bubble and shadow banking issues without a major downturn, and its economy is now resilient. In contrast, the US faces a fragile debt situation with total public debt exceeding $40 trillion (up from $9 trillion in 2007) and surging bond yields. The piece concludes that in a game of chicken, the US will blink first, and China has no incentive to respond to additional pressure.
Key facts
- The US has imposed economic and financial sanctions on Iran for decades.
- The US aims to impose secondary sanctions on Iran's trading partners, including China.
- China is Iran's main trading partner.
- US President Donald Trump initiated the trade and tech war during his first term.
- China managed to deflate its property bubble and shadow banking system without a major economic downturn.
- China's economy is resilient and can withstand shocks.
- US total public debt tops US$40 trillion, up from US$9 trillion in 2007.
- US bond yields are surging to 2007 levels.
Entities
Institutions
- US Treasury Department
- Getty Images
- TNS
Locations
- Washington
- China
- Iran
- United States