Analysis of Chinese Economic Statecraft and its Methods through Four Case Studies

Abstract

In the past decade, China has employed its economic statecraft more frequently, possibly due to its more advanced economic capabilities and its more assertive foreign policy. Four case studies (South Korea, Australia, Canada, and Lithuania) are analysed from the past few years regarding the Chinese economic statecraft methods in order to get a better understanding of the methods used and to derive useful conclusions and recommendations for potential future cases of economic coercion. An analysis of the four cases to identify similarities in the methods utilised by Beijing shows that success rates vary at best, and many adverse effects for China are also found. Countries should be aware of such coercion methods, although building resilience seems to be more successful in easing tensions than does all-out deterrence.