•  
  •  
 

Abstract

This article examines the evolving role of sanctions and export controls led by the United States (U.S.) in shaping global trade dynamics, particularly in response to Russia’s invasion of Ukraine and China’s technological and military advancements. The U.S. has expanded its use of extraterritorial export control measures, particularly the Foreign Direct Product Rules, to regulate the global flow of strategic commodities, technology, and software. The study explores the extensive sanctions and export control regimes imposed on Russia following its 2022 invasion of Ukraine, including restrictions on energy, finance, and military-related technologies. The article also evaluates Canada’s parallel regulatory framework and compares its scope, enforcement, and effectiveness with that of the U.S.

Furthermore, this work delves into U.S. efforts to curb China’s technological development through semiconductor export restrictions, targeting companies, such as Huawei. This strategy has escalated trade tensions, compelling China to develop self-sufficiency in critical industries. However, the effectiveness of U.S. sanctions and trade restrictions remains uncertain. While they have caused economic strain on targeted nations, they have also fueled closer alliances between Russia and China, encouraged retaliatory measures, and strained relationships with key U.S. trade partners. Additionally, the legality of these restrictions under the World Trade Organization (WTO) obligations remains contested, with China challenging U.S. export controls as discriminatory and trade-restrictive. If the U.S.’s coercive trade policies alienate allies, disrupt global supply chains, and violate WTO commitments, they could backfire, which could hinder American businesses, isolate the U.S. from international markets, and ultimately undermine its ability to maintain technological and military supremacy.

Download

Share

COinS