Economic and trade sanctions are one of the United States’ most powerful foreign policy tools. They are deployed to change the behavior of a country, entity, or individual, and to further various geopolitical and national security goals, from nonproliferation and counterterrorism to democracy and human rights. The United States uses economic sanctions more than any other country, and because of the strength and centrality of the US dollar and financial system in global transactions, those sanctions are particularly powerful—a transaction conducted in US dollars creates a nexus with the United States, and therefore US jurisdiction, that can subject a foreign party to US sanctions. As the US-China relationship continues on a downward trajectory, Chinese individuals and entities have increasingly become targets of US sanctions.

Prior to landing in newly COVID-secured China, travelers will fill out a WeChat health questionnaire to obtain a Health Declaration QR code. Upon de-planing, travelers will line up for entry into the administrative processes for COVID-19 testing and entry into quarantine. The process will move travelers through various stations across the airport to obtain background travel history, health information, and China contact information, all to be captured in various QR codes.

The National Defense Authorization Act (NDAA), annual must-pass legislation appropriating funds for US defense and national security purposes, has become a vehicle to push through China-related policy priorities in recent years. For example, the 2018 NDAA included provisions barring the use of federal funds to purchase Chinese telecommunications equipment, and the 2020 NDAA included provisions to prevent federal grants from going toward trains made by state-owned or controlled companies, with an eye toward China. The 2021 NDAA will also include a variety of provisions related to China, particularly given the 116th Congress’s bipartisan interest in addressing China-related concerns. 

Recent statements by senior government officials suggest that the United States and China are rapidly decoupling their supply chains, but discussions with US-China Business Council member companies indicate that shifts away from the market are unlikely in the medium term. As the pandemic stretches access to key products and governments consider the resilience of their national supply chains, it is important to understand why companies invest in China and the policies that attract those investments in China and around the world.