In the escalation of sanctions between the United States and the Chinese Communist Party (CCP), the CCP would be at a disadvantage since it would lose the entry of investments so necessary for its economic revival slowed down by the effects of the CCP Virus.

This could explain the delay in the expected CCP retaliation for the U.S. Department of Commerce’s sanctions against several companies linked to the CCP, including the multinational telecommunications company Huawei, according to the South China Morning Post on July 21.

After the Chinese  Communist Party warned that it was preparing  its own company sanction list, including the world’s largest military contractor, Lockheed Martin, it seems in no hurry to complete the details governing the punishments.

“Given this discrepancy, it is good for China [the CCP] to keep the details of the sanction vague. If not, future actions against the U.S. will be predictable, and that will make China passive in strategy and tactics,” said Shi Yinhong, professor of international relations at Renmin University of China and adviser to China’s State Council, according to the Post.

Thus, the CCP would have to employ very careful strategies that would allow it to harm American companies without negatively affecting its own interests.

Other companies that could be subject to CCP retaliation are Honeywell, Oshkosh, General Dynamics, and its subsidiary Gulfstream Aerospace.

Furthermore, despite the fact that the CCP warned that it would sanction Boeing for selling arms to Taiwan, it has continued to buy commercial aircraft and components for its own aviation industry, without interruption.

Although on some occasions the CCP has answered sanction for the United states with sanction of its own, a suspension of the flow of capital would be catastrophic.

The Trump administration has taken several steps to respond to conflicts generated by the CCP, including the trade war, the CCP Virus pandemic, territorial disputes in the South China Sea, the new national security law in Hong Kong, arms sales to Taiwan, and numerous serious human rights violations.

While uncertainty remains over the normalization of the CCP’s relations with the United States, a meeting of the U.S. secretary of state with senior CCP officials in London points to the continuation of talks.

“We think that the entire world needs to work together to ensure that every country, including China, behaves in the international system in ways that are appropriate and consistent with the international order,” Pompeo said on July 21, according to a U.S. State Department news report. 

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