Can external pressure change a nation's foreign policy? China's economic might gives it substantial power to exert economic coercion to "punish" and "pressure" other nations, argues Dr. Sheila A. Smith, John E. Merow senior fellow at the Council on Foreign Relations.
Dr. Smith says, "I think this has been the surprise of the last couple of years is that in the past, you've largely seen the Chinese government punish, if you will use coercively. Its economic power. So you saw it with the Philippines a decade ago, when the Philippines had a territorial dispute over contested islands in the South China Sea. And the Chinese decided that they were going to punish the Philippines through trade embargoes through less purchase of Philippine products, agricultural products, mostly. But the Philippines is a small country. And so to date, the Chinese have largely used this instrument, the idea that, you know, trade with China, foreign direct investment by China would be a diplomatic tool, but they've largely used that for smaller countries that are much more vulnerable to Chinese interests. What you're seeing today is China use this more conspicuously with countries with significant economic engagement with China. And of course, the Australian case comes to mind, most obviously, because the Chinese have really amped up the pressure in Australia."
This interview was recorded in 2021.
