Title page
Contents
EXECUTIVE SUMMARY 5
I. INTRODUCTION 7
II. THE ROLE OF ECONOMIC STATECRAFT IN A TAIWAN CRISIS 8
Goals of Economic Countermeasures 8
Current Economic Statecraft Tools 9
Tools in a Future Crisis 11
III. SANCTIONS SCENARIOS AND THEIR COSTS 13
Economic Countermeasures Aimed at China's Financial System 13
Economic Countermeasures Aimed at Individuals and Entities Associated with CCP and PLA Leadership 19
Economic Countermeasures Aimed at China's Industrial Sectors 26
IV. PRACTICAL CHALLENGES IN SANCTIONS DEVELOPMENT 34
CONCLUSIONS AND RECOMMENDATIONS 36
ACKNOWLEDGMENTS 38
Table 1. Tools Available to G7 Nations and Examples of Their Use Against Russia 10
Table 2. China's Global Banking Sector Links 15
Table 3. Global Trade Links of Chinese Industries with Elevated Sanctions Risk 28
Table 4. Investment Exposure to Chinese Industries with Elevated Sanctions Risk 29
Table 5. Direct Global Trade Exposure to Chinese Industries with Elevated Sanctions Risk 30
Table 6. Immediate Economic Value at Risk from Sanctions on China's Aerospace Industry 32
Boxes
Box 1. How Well-Developed Are China's International Payments Alternatives? 20