New Delhi, June 30: China’s use of economic incentives to advance its foreign policy objectives has produced mixed outcomes globally, delivering short-term strategic gains in some countries while encountering significant resistance in nations with stronger democratic accountability, according to a new study by political scientist Audrye Wong.
The findings are presented in Wong’s book, Subversion and Seduction: China’s Economic Statecraft, and an accompanying article published in The Diplomat. The study examines how Beijing has used trade, investment and financial incentives to influence political decisions and diplomatic positions in different regions.
According to Wong, China’s economic statecraft has achieved specific transactional objectives in some cases. The study cites Cambodia’s support for China’s position on the South China Sea within the Association of Southeast Asian Nations (ASEAN) as an example of Beijing successfully influencing multilateral decision-making.
The report also states that China has secured support or silence from some governments and companies on issues it considers strategically important, including matters related to the Uyghur population in Xinjiang. However, Wong argues that such measures have not fundamentally strengthened China’s long-term global standing or created lasting political allies.
The study contends that methods involving alleged political inducements, regulatory circumvention or other subversive tactics have, in several instances, adversely affected China’s international image while undermining its stated objective of promoting mutually beneficial cooperation.
The report further highlights that China’s economic influence has encountered greater resistance in countries where political leaders are subject to stronger institutional accountability. It contrasts these cases with nations where political decision-making faces fewer domestic constraints.
According to the study, economic interdependence has also influenced policy debates in Europe. In Germany, business groups with significant commercial interests in China, particularly automobile manufacturers, have advocated continued economic engagement with Beijing. The report notes that the Chief Executive Officer of Mercedes-Benz publicly opposed a European Union anti-subsidy investigation into China’s electric vehicle industry earlier this year, citing the company’s substantial presence in the Chinese market.
The study also refers to Malaysia, where previous concerns surrounding Chinese-backed projects have coexisted with continued recognition of China’s economic importance, influencing domestic political approaches toward issues including the South China Sea and Xinjiang.
Wong concludes that Beijing continues to derive strategic influence through deep economic interdependence rather than by building broad political consensus. The study argues that China’s position as a major trading partner and investment source continues to shape policy calculations in many countries despite increasing geopolitical scrutiny.
