Tuesday, March 19, 2024

China’s Use of Economic Leverage in the South China Sea Disputes: Objectives, Measures, Conditions and the Possibility of Application to Vietnam

Economic leverage is one of the most effective tools used by China in the South China Sea disputes recently. As a new phenomena of China’s economic statecraft, it serves China’s interests in the South China Sea, including punishing countries whose policy goes against China’s interests, encouraging countries with policy supporting China’ stance, sending a message of China’s power to other partners and opponents. Based on different contexts, China would deploy this tool in various ways, namely passive leverage, active leverage, “exclusionary” leverage, coercive leverage and latent economic leverage. Analysing these factors will enable the countries, especially claimants in the South China Sea disputes, including Vietnam, to somehow predict when and how they will be affected by China’s eocnomic leverage tool.

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