China has experienced both successes and failures in its economic influence endeavors. While employing subversive tactics has allowed China to gain ground in countries like Cambodia, where leaders have relative freedom, it has backfired in places like the Philippines with more accountability mechanisms. Audrye Wong, author of ‘Subversion and Seduction: China’s Economic Statecraft,’ highlighted these points in The Diplomat. Beijing’s economic strategies were effective in scenarios like vetoing a multilateral statement with Cambodia’s support in ASEAN regarding the South China Sea.
On a strategic level, China’s subversive inducements, such as bribing politicians or skirting regulations, have tarnished its global image. This approach contradicts China’s aim to be seen as a power promoting mutually beneficial cooperation. Wong noted that China has used economic incentives for short-term gains, like persuading Greece and Hungary to block an EU statement critical of China. However, this has not fostered lasting alliances or positive perceptions, but rather created divisions.
In Germany, the influence of business groups, particularly auto companies with ties to China, has caused internal rifts on national strategy towards China. These divisions hinder the formation of a unified coalition led by the US to counter China’s influence and behavior. China’s economic tactics, focused on positive inducements like trade and investment, differ from Washington’s emphasis on sanctions and coercion in economic statecraft. This sustained approach aims to align countries with Beijing’s foreign policy interests.
Despite past resistance to corrupt Chinese projects in Malaysia, favorable Chinese investments have swayed politicians to prioritize economic ties with China. German automakers, heavily reliant on the Chinese market, advocate for cooperative policies towards Beijing. This lobbying was evident when the CEO of Mercedes-Benz, a major player in China, opposed an EU probe into China’s electric vehicle industry. China’s economic significance as a key partner influences the decisions of many political leaders globally, shaping their attitudes and actions.
