UNINTENDED CONSEQUENCES: How America Inadvertently Created an ‘Axis of Evasion’ Led by China

Western sanctions and export controls were meant to subdue foes of the U.S. but instead have led to a shadow economy

They have inadvertently birthed a global shadow economy tying together democracy’s chief foes, with Washington’s primary adversary, China, at the center.

By Ian Talley

 and Rosie Ettenheim

Updated May 30, 2024 12:34 am ET

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Western sanctions and export controls were meant to subdue America’s enemies, leveraging the power of the dollar to strong-arm governments into submission without the bloodshed of military force. They have inadvertently birthed a global shadow economy tying together democracy’s chief foes, with Washington’s primary adversary, China, at the center.

Unprecedented finance and trade restrictions on Russia, Iran, Venezuela, North Korea, China and other authoritarian regimes have squeezed those economies by curbing access to Western goods and markets. But Beijing has increasingly foiled those U.S.-led efforts by bolstering trade ties, according to Western officials and customs data. The bloc of sanctioned nations collectively now have the economy of scale to shield them from Washington’s financial warfare, trading everything from drones and missiles to gold and oil. 

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