What is economic coercion?

Economic coercion is a threatened or actual imposition of economic costs on one state by another with the objective of extracting a policy concession.

What economic theory does China use?

socialist market economy
Since the introduction of Deng Xiaoping’s economic reforms, China has what economists call a socialist market economy – one in which a dominant state-owned enterprises sector exists in parallel with market capitalism and private ownership.

Does China allow economic freedom?

China’s economic freedom has grown over the past few decades, but at a snail’s pace. The Chinese economy remains “mostly unfree” and stands as the 107th-freest (out of 179) in the 2021 index, lagging behind the majority of other countries in maximizing opportunities for greater economic dynamism.

Why is China so economically successful?

Economists generally attribute much of China’s rapid economic growth to two main factors: large-scale capital investment (financed by large domestic savings and foreign investment) and rapid productivity growth. These two factors appear to have gone together hand in hand.

What can China learn from the American experience on economic coercion?

Over time, China may come to learn from the American experience that economic coercion, although it may be gratifying, rarely produces the sought-after policy outcomes. Resisted by even the weakest of states for decades on end, American-led sanctions cause unnecessary human suffering and breed deep resentment.

Is China’s economy good or bad for emerging countries?

Economic ties with China welcomed in many emerging markets, but some concerns over Beijing’s influence. Across 18 countries, more people think China’s growing economy is a good thing than a bad thing for their country. Overall, a median of 55\% see benefits to a strong Chinese economy; 30\% say it is bad for their country.

Is China turning to economic coercion to threaten US interests?

China has begun increasingly relying on economic coercion — much in the same way the United States has in the last two decades — to pressure its neighbors and threaten U.S. interests in the Pacific.

How should targeted countries report the impact of China’s economic coercion?

First, targeted countries should be careful not to exaggerate the impact of China’s economic coercion. International reporting often overdramatizes the economic damage done by China by not weighing the relative value of goods restricted with the targeted country’s total trade.