Economic security

Do 'National Security' Threats Signal The Beginning Of The End For U.S.-China Trade Relations?

The Trump administration is gearing up for renewed confrontation with China on trade-related issues. Most observers have focused their attention on the threat of increased tariffs or the “renegotiation” and dismantling of existing free trade agreements.

In 2018, Washington could unleash a host of damaging policy weapons that have nothing to do with customs duties.  Instead, the theme of U.S. “national security” will be invoked to monitor, control and block a broad range of commercial activities between Chinese and American entities.

There are a variety of show-stopping situations that could transpire—literally from one day to the next—which could disrupt cross-border commerce:

• Blocked foreign acquisitions or deals with U.S. “nationally sensitive” firms and industries
• Increased sanctions against individuals, companies and countries
• New export licensing requirements for a growing list of seemingly benign materials and components.