What is fraught for Beijing and Washington new US economic sanctions against China

Recently, the US authorities announced the imposition of additional sanctions against the People’s Republic of China for China’s cooperation with Iranian defense enterprises. It is assumed that in the near future the United States will completely prohibit access to its market for a number of large Chinese firms. Despite the statement of a number of international experts that these restrictions will hit, first of all, the American economy, Washington refuses to «back down» at those practices. And this is logical.

The fact is that these sanctions concern five companies from China at once, which over the past few months have been actively supplying Tehran with spare parts and technologies for the production of military unmanned aerial vehicles. According to some reports, the turnover of such Chinese-Iranian cooperation has already exceeded $100 million, and this amount will grow exponentially in the foreseeable future. Chinese products go directly to the factories of the Iranian aircraft corporation HESA, which produce Shahed-136 UAVs. Subsequently, these drones are used by Russia to strike at strategic targets in Ukraine.

Earlier, Iranian President Seyyid Ebrahim Raisi, at a meeting with Chinese leader Xi Jinping, announced his intention to «actively strengthen partnership contacts with China in all areas», including the defense industry. «We should not pay attention to the opinion of Washington in these matters», Raisi summed up, in particular. This opinion was shared by the Chinese leader, who left Tehran and Beijing to independently resolve bilateral issues in the field of geopolitics and economics.

At the same time, the new restrictions imposed by Washington, despite their seeming insignificance, may adversely affect certain areas of Chinese imports. «Thus, Beijing will lose more than $300 million of potential profit in total», American political commentator William Connolly noted in a commentary for EURO-ATLANTIC UKRAINE. – It will take at least six months and additional financial resources to convert «enterprises banned by the United States» into alternative markets for the PRC». At the same time, the analyst stressed that these sanctions will certainly affect the United States itself. «Among other things, the respective companies produced computer equipment and content for high-precision technologies. America’s losses will also amount to considerable sums», he said.

Be that as it may, representatives of the United States Department of the Treasury, which regulates legislation in the field of sanctions, announced its intention to expand the package of restrictions against China. «Washington plans to demonstrate its steadfastness in the fight for the transparency of export-import transactions in the global trading environment», the agency said in a statement.

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