miércoles, 25 de julio de 2012

China’s Coercive Economic Diplomacy

 The Diplomat.

When the 10 member nations of ASEAN failed to reach agreement on the wording of a joint communiqué for the first time in 45 years, most pundits blamed this year’s ASEAN chair, Cambodia, for failing to forge a consensus.  Behind Phnom Penh’s passivity, however, was pressure from Beijing to keep any mention of the South China Sea, especially the recent faceoff between China and the Philippines in the Scarborough Shoal, out of the final statement. That the Chinese had sway over Cambodia should not come as a surprise.  Beijing has provided billions in aid to Cambodia.  In 2011 alone the amount of foreign investment pledged to Phnom Penh by China was 10 times greater than that promised by the United States. 

For more than a decade, China has pursued a strategy in Southeast Asia that relied heavily on economic carrots to increase the stake of the Southeast Asian countries in maintaining good relations with China.  The China-ASEAN FTA, Chinese foreign direct investment, foreign assistance, and trade have all been used to encourage countries to consider Beijing’s interests when formulating policies and eschew actions that China would view as objectionable.  In the past few years, however, China has directly used economic relations to compel target countries to alter their policies.  And this growing trend is worrisome.