It must be stressed that the analysis which follows is not based on access...
2021-08-02 3 ENGLISH REPORTS
Beijing a distinct advantage in helping to shape the rules of the game for foreign companies seeking to enter its domestic market and has allowed China to flex its economic muscle for foreign policy ends. Its uses of that power have become more forceful over the last decade, especially in terms of economic coercion. Since 2008, there have been at least 11 cases of China using economic coercion, but there is little to tie those cases together other than the target countries having taken actions that China viewed as harmful to its interests. The size of the target countries ranges from Palau to France and the United Kingdom to Australia. And of course, South Korea and Japan have faced China’s ire. China’s coercive campaigns take place for a wide variety of reasons. Some were kicked off because of security concerns, as when South Korea installed a THAAD battery south of Seoul at the request of the United States as part of its defenses against North Korea.
Other campaigns have been initiated because of territorial disputes, as happened with the Philippines in 2012. Stemming from a dispute over the Scarborough Shoal, China tightened restrictions on imports from the Philippines, with a special focus on bananas. Coercive campaigns are sometimes a reaction to human rights. Receiving the Dalai Lama made France, Norway, and Britain targets. And China will also retaliate against countries that target its businesses. Canada’s 2018 arrest of Huawei’s chief financial officer at the request of the United States for evasion of sanctions on Iran led to several Canadian agricultural products being shut out of China’s market (as well as retaliatory detentions of two Canadians, Michael Kovrig and Michael Spavor). China does not only target countries. Its most recent campaign is against western fashion companies that are removing Xinjiang cotton from their supply chains because of suspicions that the cotton is produced with the forced labor of Uyghurs.
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