Why US sanctions threats against China aren’t credible

The US threat of sanctions on China because of Beijing’s relationship with Iran isn’t credible. The artificial intelligence bubble and its own precarious bond market make the US more vulnerable to a shock than China.

Even if the US risks massive self-harm and kicks major Chinese institutions off SWIFT, the global messaging system enabling dollar-based cross-border payments, it will merely accelerate the yuan’s rise.

China’s trading partners can easily switch to the perfectly functional yuan...