The Center for Strategic and International Studies (CSIS), a bipartisan, nonprofit policy research organization, recently published a report titled "Expanding the Tool Kit: To Counter China's Economic Coercion." The report examines strategies that the U.S. can employ to counteract China's powerful global economy, which it leverages to influence other countries in favor of its own interests. CSIS released this report on May 6.
According to the report, China currently boasts the leading global economy, which has fortified both its military and political power over the last 12 years. This economic dominance has emboldened China to exert greater influence over other nations. The report asserts that the U.S. and its allies lack the equivalent strength necessary to counterbalance China's economic prowess. As a potential solution, it suggests targeted export controls on key goods within China's supply chain where Western nations hold manufacturing advantages. Such measures could impose costs on China and deter its coercive actions.
The CSIS report further recommends that U.S. economic policy should "prioritize goods where the United States and its allies have market dominance, where China’s domestic capability lags by several generations, where import substitutability is low,
and where the U.S. economic impact is low." It also advocates for sanctions designed for long-term success rather than short-term gain.
"Harnessing durable political commitment from the U.S. Congress" is crucial according to CSIS, along with cooperation from the executive branch in order to lend credibility to any imposed sanctions. The report emphasizes bipartisan cooperation both within Congress and with the executive branch. It also suggests that "credible coercive sanctions" should include an "off-switch," as a means of fostering compliance with U.S. demands.
The report further advises that the U.S. should regularly consult and engage with its allies regarding these coercive sanctions.
