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I love that capitalism is more concerned about setting precedent here than saving lives, yet nonsense like civil forfeiture in the US leads to millions stolen from regular people each year. It's always only about whose bottom line is affected. Can't make a case for seizing foreign assets and redistributing them. That would mean everyone can do it and after all, it's a large club of very white gentlemen who have backroom agreements on this kind of stuff. If they do this with Russian assets, what's gonna stop China from doing the same with US assets!? How could we ever keep up with international trade and investments and tax evasion schemes, if we allow such horrible treatment of the most vulnerable billionaires of our society?
Shit's fucked.
If they seize US assets in China, we seize their assets in the US. Then we default on the $870 billion dollars in debt we owe to them, cut them off from American markets, and watch India become our biggest trading partner.
I don't know shit about finances or economics or markets, but this seems to make sense. That's probably why it makes sense to me in the first place.
It seems similar to mutually assured destruction, like the one that a nuclear arsenal poses, acting as a deterrent to all the parties involved. If you harm their market, they harm yours, and in this day and age, it's more disastrous than ever, perhaps.
The bigger problem is likely spread out across smaller markets, which, combined, net you a solid benefit and profit, but if some of they start using such precedents as an excuse to seize your assets for only their benefit and profit, they might lose less than you do, ultimately proving the concern in @AlteredStateBlob@kbin.social's comment above.
We might as well be discussing it in way more detail than the decision-makers here, as yeah, setting precedents that could (or could not) potentially harm their profits and leviathan wealth is a no-go for them.