Search

Begin New Search Topic Sanctions Political Geography Asia

1. New Information on Shenyang Machine Tool Company’s Illicit Sales to North Korea and Russia

Author:
David Albright and Spencer Faragasso
Publication Date:
01-2025
Content Type:
Special Report
Institution:
Institute for Security and International Studies (ISIS)
Abstract:
Several years ago, the Institute reported about the relatively large, multinational Chinese company Shenyang Machine Tools Company supplying sophisticated computer numerically controlled (CNC) machine tools, equipped with Western controlled software, to North Korea in violation of UN Security Council (UNSC) sanctions and a supplier country’s trade control laws that banned re-export of this software. New information details the disingenuous way in which the Chinese government investigated this case, indicating nonetheless inadvertently that North Korea received these machine tools, while also demonstrating China’s utter disregard for enforcing UNSC sanctions or its own or others’ export control laws. This case serves as another of the many cases highlighting China as a long-time irresponsible trading partner that responsible companies should avoid when sensitive dual-use goods are involved, lest they be complicit in outfitting North Korea’s, Iran’s, or Russia’s military programs. Today, responsible suppliers are inadvertently facilitating Russia’s prosecution of an illegal war against Ukraine. Given Shenyang Machine Tools Company’s recent exports of goods to Russia with Harmonized Shipments (HS) codes found on the Bureau of Industry and Security (BIS) Common High Priority List (CHPL), this company should be considered for sanctions.
Topic:
Sanctions, Trade, Illegal Trade, and Shenyang Machine Tool Company
Political Geography:
Russia, China, Europe, Asia, and North Korea

2. Alignment or Misalignment? US and EU High-Tech Trade and Sanctions Policies toward China

Author:
Antonio Calcara and Jeffrey J. Schott
Publication Date:
04-2025
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
This Policy Brief focuses on the alignment or misalignment of the European Union and the United States on high-technology trade and sanctions vis-à-vis China. The Trump administration is likely to continue the aggressive US stance toward China in the technological realm, putting increasing pressure on its European allies to align with US policy. The Europeans, for their part, are in a difficult position: On the one hand, they are under pressure from the US government; on the other hand, the more Washington restricts Chinese trade, the more Chinese exporters will look to the European market to sell their manufactured goods. Increased competition from Chinese imports in Europe, especially in the automotive sector, could in turn trigger a political backlash that weakens support for transatlantic coordination on China.
Topic:
Science and Technology, Sanctions, European Union, Trade Policy, and Imports
Political Geography:
China, Asia, United States of America, and European Union

3. What if? The Effects of a Hard Decoupling from China on the German Economy

Author:
Julian Baqaee, Julian Hinz, Benjamin Moll, Moritz Schularick, Feodora A. Teti, Joschka Wanner, and Sihwan Yang
Publication Date:
01-2024
Content Type:
Policy Brief
Institution:
Kiel Institute for the World Economy (IfW)
Abstract:
How would the German economy cope with a hard economic decoupling from China? The authors study a scenario where the global economy fragments into three distinct blocs: the G7 economies and their allies, China and her allies, as well as neutral countries. German trade with China would have to be entirely rerouted to countries within the "Western" block and neutral countries. The authors quantify the costs of such a worst-case hard decoupling using the (Baqaee and Farhi 2021) multi-sector model of the world economy. The key finding is that a total cut-off of trade relations with China would have severe but not devastating effects on the German economy. The welfare loss for Germany (relative to a no-cut-off baseline) would be around 5 percent of Gross National Expenditure (GNE) over the first few months and around 4 percent over the first year, plus additional short run costs due to business-cycle amplification effects. In the medium and long run, the costs would fall to a permanent loss in the 1–2 percent range. Less extreme decoupling or gradual de-risking scenarios (“small yard, high fence") would incur smaller costs. The single most influential assumption relates to the “trade elasticity,", i.e., the ease and speed with which trade can be reorganized away from China to neutral countries and within the “Western” block. The authors´ findings, in particular the critical dependence of economic costs on the time horizon over which adjustments take place, provide some rationale for embarking on a gradual de-risking trajectory to avoid a costly and politically contentious hard decoupling dictated by geopolitical events.
Topic:
Globalization, International Trade and Finance, Sanctions, Geoeconomics, Decoupling, and De-Risking
Political Geography:
China, Asia, and Germany

4. Kubernetes: A Dilemma in the Geopolitical Tech Race

Author:
Sunny Cheung
Publication Date:
09-2024
Content Type:
Journal Article
Journal:
China Brief
Institution:
The Jamestown Foundation
Abstract:
US-sanctioned Huawei has significant influence in the Cloud Native Computing Foundation and its open-source platform Kubernetes, which underpins US military platforms, including F-16 fighter jets and nuclear infrastructure. The use of open-source technologies in critical systems raises concerns. Despite US efforts to mitigate risks, Kubernetes remains tempting to exploit for attackers. Open source fosters global innovation, from which the United States benefits. But this same openness also strengthens US competitors. The United States should therefore develop a clear framework to understand and mitigate the challenges posed by open source.
Topic:
Science and Technology, Sanctions, Geopolitics, Innovation, Strategic Competition, and Huawei
Political Geography:
China, Asia, and United States of America

5. Effectiveness of United Nations Security Council Sanctions: A Case Study of North Korea

Author:
Saira Iqbal
Publication Date:
07-2024
Content Type:
Journal Article
Journal:
South Asian Studies
Institution:
Department of Political Science, University of the Punjab
Abstract:
In the absence of a governmental structure, associations, organizations, or groups oversee managing global affairs and preserving stability and peace. The United Nations was founded in the wake of World War II and the start of the Cold War to guard against the possibility of nuclear weapons and a third world war, because of the then-current nuclear race. Nonetheless, the organizational structure has rules and regulations, occasionally with penalties attached, to maintain that harmony. This paper examines the effectiveness of the UN Security Council sanctions by using the case study of North Korea. This research evaluates how sanctions affect North Korea's political and economic behavior by applying the coercive diplomacy theory and this study is analytical and descriptive in nature. Many books, articles, newspapers, books, journal articles, governmental publications and United Nations resolutions documents are used to read, explore and analyze the resolutions passed by United Nations Security Council regarding North Korea. The results imply that sanctions have not had much of an impact on North Korea's nuclear program, while having some success in reducing the country's trade and access to foreign capital. The report indicates that denuclearization is unlikely to be achieved by sanctions alone and suggests a comprehensive strategy that combines ongoing pressure, diplomatic engagement, and economic incentives. The paper offers insights for policymakers attempting to solve the North Korean nuclear development threat and adds to the continuing discussion over the efficacy of sanctions as a coercive diplomatic tool.
Topic:
Nuclear Weapons, United Nations, Sanctions, and UN Security Council
Political Geography:
Asia and North Korea

6. Economic Impacts of the Sanctions on the Russian Economy and Stabilization Measures for Economic Cooperation between Korea and Russia

Author:
Minhyeon Jeong
Publication Date:
06-2024
Content Type:
Policy Brief
Institution:
Korea Institute for International Economic Policy (KIEP)
Abstract:
There are concerns that the economic sanctions imposed by the West on Russia will continue even after the end of the Russia-Ukraine war, which began in 2022 and has since prolonged. This is because the nature of the war encompasses a multifaceted structure that cannot be easily explained by the mere clash of interests between Russia and Ukraine, the primary parties involved. Therefore, it may be overly optimistic to expect that the Western sanctions against Russia will be fully lifted following the conclusion of the war. If there is a high likelihood that the Western economic sanctions against Russia will be prolonged, it is necessary to systematically analyze the long-term impact of these sanctions on the Russian economy. Even though Russia's economic growth rates in 2022 and 2023 were more favorable than anticipated by the West, it cannot be definitively stated that the long-term effects of the sanctions will be negligible. This is because the intrinsic nature of the sanctions against Russia is to "impose economic isolation," suggesting that the prolonged duration of these sanctions is likely to have structurally adverse long-term effects on the Russian economy. Meanwhile, the Government of the Russian Federation is devising and establishing various domestic and international strategies in order to minimize the structural adverse impacts on the economy. By thoroughly re-viewing these domestic and international strategies, it is essential to systematically understand the direction of development within the Russian economy and the demand for international economic cooperation. This understanding will allow for the rapid restoration of economic cooperation between Korea and Russia, and the enhancement of cooperative synergy amid prolonged sanctions. Given this backdrop, this manuscript aims to summarize three key conclusions from the work of Jeong et al. (2023). First, we provide a theoretical and empirical analysis of the long-term impact of Western sanctions on the Russian economy. Second, we review the foreign and domestic policies of the Russian Federation in response to the prolonged sanctions following the war. Third, based on the findings of the first and second analyses, we explore measures to stabilize economic cooperation between Korea and Russia under the anticipated prolonged sanctions.
Topic:
Sanctions, Economy, Economic Cooperation, and Stabilization
Political Geography:
Russia, Asia, and South Korea

7. The Rise of US Economic Sanctions on China: Analysis of a New PIIE Dataset

Author:
Martin Chorzempa, Mary Lovely, and Christine Wan
Publication Date:
12-2024
Content Type:
Policy Brief
Institution:
Peterson Institute for International Economics (PIIE)
Abstract:
Concerns over China’s national security and human rights activities have led the United States to rely increasingly on financial sanctions and export controls to curb Beijing’s behavior. But the tools are so complex it is difficult to assess their effectiveness. A new PIIE dataset sheds light on this economic statecraft. The first Trump administration added three times as many Chinese entities to export control and other sanctions lists than the previous four administrations; the Biden administration added even more to these lists. Most sanctions and controls target high-tech sectors, especially electronics, military and defense entities, aviation, space, and aerospace; targets are chosen under a veil of secrecy, raising questions over accountability and transparency. The benefits of isolating Chinese firms come with potential costs, hobbling innovation for US and allied business, encouraging circumvention of sanctions, and accelerating Chinese innovation.
Topic:
Economics, Human Rights, National Security, Sanctions, and Exports
Political Geography:
China, Asia, North America, and United States of America

8. US-South Korea Cyber Cooperation: Towards the Higher-Hanging Fruits

Author:
Jenny Jun and So Jeong Kim
Publication Date:
12-2024
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
In the past decade, the US and South Korea faced a relatively narrow set of challenges in cyberspace, notably North Korea’s cyber crime facilitating sanctions evasion. In the next decade, however, the two countries will face a more diversified set of challenges with growing North Korean ties with Russia, its involvement in the war in Ukraine, and intensifying US-China competition. The US and South Korea must develop a joint playbook for responding to scenarios of disruptive cyber operations targeting South Korean public and private sectors and prepare for an even more difficult environment for curbing North Korea’s cyber crime as Russia provides a way out. Over the past two years, the US and South Korea have significantly deepened and broadened cooperation on cyber issues and have expanded cooperation further to trilateral and multilateral settings. The two countries established several regular high-level and working-level dialogues, have issued joint sanctions and threat advisories, and deepened mil-to-mil cooperation. However, 2024 has been a watershed in terms of shifting geopolitical dynamics on and around the Korean peninsula. Cyber threats will become more diversified, and the bilateral relationship will be tested at the seams without a clear joint strategic concept and operational plan.
Topic:
Sanctions, Geopolitics, Multilateralism, Strategic Competition, and Cyberspace
Political Geography:
China, Asia, South Korea, North America, and United States of America

9. China's response to the US tech war: The closing of detours

Author:
Yang Jiang
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
Danish Institute for International Studies (DIIS)
Abstract:
In the US-China rivalry, no battle is currently more fierce than the one over technology, with both countries ramping up efforts to pursue global technological leadership. The tech war has intensified under President Joe Biden, with the US’s strangling of China’s technological bottleneck getting tighter and tighter. The US’s stated aims are protecting its national security and foreign policy interests and preventing sensitive technologies with military applications from being acquired by China. Some analysts point to Beijing’s Made in China 2025 as the trigger of the tech war because that is China’s plan to upgrade manufacturing and seek the top positions in global value chains. The US is pursuing a strategy to outcompete and outmanoeuvre China, as is stated in the Biden administration’s National Security Strategy in October 2022: “this decade will be decisive, in setting the terms of our [the US’s] competition with the PRC”. Especially in the sector of semiconductors or chips, where the West controls China’s access to the most advanced technology, US restrictions and its ability to bring its allies into line have been destructive to China’s development. On 21 May 2023, Beijing’s ban of American chipmaker Micron from critical information infrastructure in China signals a first direct retaliation from Beijing. China has also realised that some of its hitherto measures—turning to alternative sources of import, utilising policy loopholes, and sufficing with lower-level technology—are just detours. They are not long-term solutions; nor can they be the foundation of China’s national security. The US restrictions have forced China to adopt new measures to accelerate domestic innovation with more focus on basic research and market forces. How the tech war will play out has important implications for Western countries and global supply chains. This policy brief will focus on China’s responses to the US-waged tech war, specifically: What have been China’s domestic measures to respond to the tech restrictions from the US, and what is China’s potential for technological breakthrough? What have been China’s international responses, and what are China’s options for retaliation?
Topic:
Science and Technology, Sanctions, Strategic Competition, Rivalry, and Supply Chains
Political Geography:
China, Asia, North America, and United States of America

10. Economic Sanctions During Humanitarian Emergencies: The Case of North Korea

Author:
Stephan Haggard and Marcus Noland
Publication Date:
01-2023
Content Type:
Special Report
Institution:
East-West Center
Abstract:
North Korea is experiencing yet another cycle of humanitarian distress. While sanctions are not the primary cause, they are a contributing factor. This essay examines the channels through which sanctions affect the North Korean economy and reaches four conclusions: First, sanctions have contributed to a deterioration of economic performance. Second, the UNSC’s 1718 Sanctions Committee should consider a thorough review to identify goods that would warrant blanket humanitarian financial sanctions have raised the risk premium on all financial transactions with North Korea; the sanctioning authorities need to do a better job of clarifying transactions permissible under humanitarian exemptions. Finally, while the global community should reassess its policies, the government of North Korea bears responsibility as well. The benefits of sanctions relief will be diminished if North Korea refuses to engage constructively with the international community on a broader range of issues running from basic humanitarian relief to economic reform.
Topic:
International Relations, Economics, Politics, Sanctions, and Humanitarian Crisis
Political Geography:
Asia and North Korea