New Delhi: China’s use of economic inducements as a tool of geopolitical influence has delivered uneven outcomes, achieving tactical gains in some regions while failing or backfiring in others, according to a new analysis cited in The Diplomat.
The report, based on findings from Audrye Wong’s book Subversion and Seduction: China’s Economic Statecraft, argues that Beijing’s “subversive carrot” strategy—using trade, investment, and financial incentives—has enabled it to secure short-term diplomatic advantages in certain countries while simultaneously damaging its global image.
Wong notes that China has found relatively greater success in countries where political accountability is weak, such as Cambodia, where it has influenced positions within ASEAN, including support for Beijing’s stance on the South China Sea dispute. However, similar approaches have proven less effective in countries with stronger institutional checks, such as the Philippines.
The analysis also highlights instances where China’s economic leverage has reportedly contributed to diplomatic outcomes, including vetoes of multilateral statements in forums such as the European Union. Countries like Greece and Hungary are cited as examples where economic ties with Beijing have influenced positions on China-critical resolutions.
At the same time, the report argues that such tactics have contributed to growing concerns internationally, particularly regarding alleged human rights issues, including those related to Xinjiang, while also reinforcing perceptions of Beijing’s “divide and influence” approach rather than consensus-building.
In Europe, internal divisions over China policy are said to be influenced by business interests, particularly in countries like Germany, where major industrial sectors remain heavily dependent on the Chinese market. German automakers, for example, have at times opposed stricter trade actions, citing economic risks tied to China’s consumer base.
The report also points to Malaysia as an example where sustained Chinese investment has shaped political and economic calculations, reducing incentives for confrontation on sensitive geopolitical issues.
Wong further contrasts China’s strategy with that of the United States, noting that while Washington often relies on sanctions and coercive economic measures, Beijing tends to prioritise positive inducements such as trade and investment to align other countries with its foreign policy interests.
However, the analysis concludes that China’s influence is often indirect and dependent on long-term economic interdependence rather than outright political alignment, producing a complex mix of cooperation, dependence, and resistance across different regions.
With inputs from IANS