Acting one way and talking another: China's coercive economic diplomacy in East Asia and beyond

Abstract

Over the last two decades, China has experienced one of the most dramatic and sustained periods of economic growth in world history. China's use of economic statecraft provides an important venue in which to examine the role of unacknowledged ‘coercive diplomacy’ within the context of China's ‘peaceful rise discourse.’ In contrast to Western countries, which have overtly used sanctions and other forms of economic coercion, China has publicly denied any such policies while at the same time quietly pursuing them. China's denial of using coercive economic statecraft has muted the reactions of neighboring publics and government, but it cannot entirely forestall them. Without seriously undermining China's ‘peaceful-rising’ image, a more explicit statement from Beijing regarding its coercive economic measure could provide deterrence and assurance to China's neighbors in resolving the disputes. This article first surveys existing literature on economic statecraft focusing on the coercive aspects of such strategies. Second, it presents an in-depth case study on how China uses economic leverages over its neighbors in East Asia: North Korea, Japan, and the Philippines. Finally, it highlights the limits of China's economic statecraft within the constraints of China's ‘peaceful rise’ discourse. It concludes with implications for Asian politics and beyond.

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