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China, Russia face sanctions from US states now. That’s dangerous

US states want to join Washington in imposing sanctions on foreign adversaries. That’s bad for the world — and the US.

Gifty Okoampah by Gifty Okoampah
March 24, 2023
in International, News, opinions, United States, World News
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Sanctions have become all the rage in international politics. The United States and its allies are imposing them on rivals with increasing frequency and severity. And those rivals are reciprocating where they can.

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Now, American states, too, are increasingly getting in on the act. And that’s bad news — for the world, and for US foreign policy. A much-publicised episode of a Chinese balloon entering US airspace seems to have created new energy for such restrictions and has led to legislation being proposed in at least 11 states.

On Wednesday, the South Carolina State Senate passed a bill barring ownership of land in the state by citizens of US geopolitical adversaries Russia, China, North Korea, Iran and Cuba. The bill’s top sponsor even compared a planned purchase of South Carolina land by a Chinese biomedical firm with the Trojan Horse plot of Greek mythology.

Meanwhile, Texas State Senator Lois Kolkhorst has proposed a similar law that has drawn strong condemnation on human rights grounds but has been defended by Greg Abbott, the state’s Republican governor. A simple reading of the original version of this bill would lead one to conclude that any individual who holds citizenship from any of the mentioned countries, or any firms which they own, would be barred from owning property. This would have included American citizens who hold dual citizenship. Since then, the language has been softened to protect dual citizens and permanent residents but not citizens of those countries residing in Texas on a visa.

Implementation of such language would impose new and unusual due diligence requirements on common land transactions. Meanwhile, creating special restrictions on various immigrant communities to own property poses human rights concerns.

Existing sanctions laws and Treasury Department designations already block leaders from those American adversaries from transferring money into the US or owning property in the country. Meanwhile, recently introduced federal legislation aims to ban US adversaries from purchasing large swaths of farmland in the US.

So why would a state engage in what is essentially a foreign policy and national security matter?

On the one hand, some scholars see sanctions as often being a product of domestic politics, aimed at portraying muscle to the electorate, at times influenced by pressure groups such as “ethnic lobbies”. Those in this camp of scholars are more inclined to believe that sanctions are not particularly effective. If sanctions are for the satisfaction of domestic onlookers, they will not be designed and implemented with an eye towards efficacy and the security context.

Other scholars, however, argue that sanctions are indeed imposed due to a meaningful effort to address national security concerns.

Like many in the national security decision-making scholarship community, I feel both of these binary constructions frequently fail when confronted with the history of economic sanctions. The truth is that foreign policy choices are a product of complex national security matrices that accommodate both foreign policy and domestic political considerations.

Yet irrespective of one’s overall view on the efficacy of sanctions more broadly, it is hard for anyone to deny that policies against foreign nationals adopted by state governments can have little explanation other than domestic and even local politics.

In the US, the executive branch has always been best suited to make foreign policy decisions due to its clear mandate and wherewithal in this field. Congress has a constitutional role in foreign policy matters but it’s far more likely to be influenced by domestic political pressures and national anxieties.

The executive branch largely controlled sanctions policy throughout the Cold War era. But after the fall of the Soviet Union, as major threats to the homeland faded, Congressional and sub-federal forces became increasingly involved in this field.

While Congress has largely ceded its war power authority in the modern era, it has become more active in sanctioning due to an impulse of members to be seen as projecting power against American adversaries even when it interferes with the president’s efforts to engage in strategic policy.

What about state legislators and governors? They have no real national security staff nor the relevant mandate, as their elections almost always lack any meaningful foreign policy discussion and are decided based on provincial issues, whether taxes or abortion rights.

Yet their meddling in foreign policy isn’t superfluous — it can actually be reckless, for global diplomacy and for US foreign policy. Here’s how.

As written, the mentioned measures are unlikely to meaningfully interfere with the federal government’s ability to carry out its foreign policy. But one can imagine a scenario in which sanctions imposed by states do just that.

New York state and California preside over major nodes of the global banking community and the international technology supply chain. Texas itself is a major player in global energy markets. Other states can wield a more narrow version of such powers as well.

There are already examples of when New York State has targeted European firms for their perceived violation of sanctions, ignoring objections at the federal level. States can, as the federal government has often done, impose restrictions on firms operating in their jurisdiction in a way that has extraterritorial consequences.

This in turn sets up a precarious dynamic. The federal government might have to mollify or negotiate with state governments led by ambitious politicians responding to special interests or catering to local constituencies.

Equally, state governments of the party in opposition can actively undercut diplomatic efforts of the federal government using such sanctions. For example, a federal effort to ease sanctions on Cuba could create political momentum for state sanctions in Florida, where families of those who fled communist rule are a powerful lobby.

Ultimately, sanctions are a tool of foreign policy and the capacity to modulate or even repeal them is critical to accomplishing the political goals behind sanctions campaigns. For the president or Congress to have to lobby with state governments, each representing a fraction of the overall population, to alter America’s sanctions against a country would represent a bizarre new obstacle to the federal government’s ability to carry out its foreign policy obligations.

The proposed Texas and South Carolina laws are textbook examples of sanctions as political grandstanding meant for domestic consumption. They are also a reminder of the jingoistic zeal that can be nurtured and exploited by foreign policy amateurs at the state level.

As we embark upon what scholar Peter A G van Bergeijk calls the “second wave” of global sanctions, states will likely look further to getting in on the act with human rights and global affairs.

Washington’s basic ability to carry out a coherent foreign policy hangs in the balance.

By: Ahmadi Ali

………………………………………………………………

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