China's use of economic measures as a tool in geopolitical competition with the United States has drawn increasing attention. These practices, often unilateral and import-oriented, are perceived by some as domestic regulatory moves. However, international scrutiny suggests a more complex picture beyond China's assertive diplomacy narrative.
The country's experience as a target of sanctions and its observation of U.S. strategies have shaped its approach to economic coercion. "It [China] has embraced unilateral economic measures with vigor," note Evan A. Feigenbaum and Adam Szubin, highlighting China's emulation of U.S. tactics.
Chinese discourse reflects tension between opposing U.S. sanctions and leveraging trade dependence for statecraft. Historically, China views sanctions through a "victim of hegemonic politics" lens, considering them exploitative tools used by great powers to advance foreign policy rather than enforce laws.
Since 2010, China's coercive economic actions have increased in frequency and scale. Instances like export restrictions on rare earth materials during disputes with Japan and suspending trade with Lithuania over Taiwan-related issues exemplify this trend.
Central to China's strategy is learning from U.S. policies post-World War II, particularly targeted sanctions aimed at political elites or groups within states rather than entire nations. This method minimizes economic costs to the sanctioner while leveraging industrial advantages.
While Beijing publicly opposes comprehensive sanctions, it distinguishes its approach as "corrective economic coercion." Scholars argue for using sanctions to compel specific policy changes rather than pursuing broader geopolitical goals.
In recent years, legal developments such as the Provisions on the Unreliable Entity List suggest a move towards institutionalizing China's economic coercion framework. This evolution may lead to more proactive use of these tactics despite potential challenges from coordinated efforts by other major economies like the Group of Seven.
As tensions rise between resisting U.S. sanctions and employing economic coercion, China's new foreign relations law indicates an effort to embed countermeasures within its legal systems.
Amidst growing geopolitical competition between the U.S. and China, Washington is advised to prioritize private diplomacy to address risks associated with China's evolving sanction strategies without escalating tensions further.
