Sanctions are indeed on the table in the China trade war. If not outright sanctions, then look for non-tariff barriers to continue.
Presidents Trump and Xi Jinping might meet for a handshake and an agreement to continue talking during this weekends G20 Summit in Japan, but that is it. China and the U.S. are in a Cold War now, let’s face it.
Reuters reported on Tuesday that three banks may be subject to sanctions for its role in providing funding to North Korea. The U.S. Justice Department at the time accused the banks of working with a Hong Kong company which reportedly laundered more than $100 million for a sanctioned North Korea bank called Foreign Trade Bank.
Last week, the Commerce Department placed Chinese technology firms, Wuxi Jiangnan Institute of Computing Technology and Sugon on a blacklist that includes Huawei, restricting them from accessing American made microprocessors for use in technology that may ultimately be used for the Chinese military, according to the Federal Register. The restrictions went into effect this week.
Two months ago, Acting Deputy Assistant Secretary of State Laura Stone said the U.S. was considering taking action under the 2016 Global Magnitsky Act to sanction individual Chinese involved in the detention of “tens of thousands” of Uighur Muslims in a western China province. China calls it “meddling.”
The Trump Administration has been using sanctions and trade wars to get countries to bend. Results have been mixed. Only a handful of countries have come to trade agreements to avoid tariffs. Mexico recently agreed to get tougher on migrant caravans shipping people into the U.S. across the southern border. That is a work in progress.