Weaponized Interdependence

Foreign Policy warns of Rare-Earths Cutoff

“In the last 20 years, the United States has used its dominance of the global financial system to punish its adversaries by blocking them from carrying out transactions with U.S. banks, even if that means browbeating allies in the process. Now, with the prohibition of U.S. firms doing business with Huawei and other Chinese firms, Washington is testing whether it can use critical American technology used by companies the world over in a similar fashion.

Henry Farrell, a political scientist at George Washington University, calls this “weaponized interdependence,” a phrase he coined with co-author Abraham Newman. Globalization has created global economic networks of engineering centers, manufacturers, and suppliers, and countries are now examining these networks to find their weak points and exploit them for geostrategic gain.”

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