Abstract
China’s approach to economic diplomacy has undergone significant changes in recent years, especially after the global financial crisis. Responding to China’s maturation as the second-largest economy in the world, Chinese leaders have called for their country’s transformation into a “strong trading power.” To this end, they have directed reforms to deepen Asia’s integration as a regional economy, modify international trade rules and standards, and secure needed technology, resources, and markets to improve China’s competiveness. This shift has occurred at a time of intensifying strategic competition with the U.S. and the Chinese economy’s increasing exposure to threats around the world. Concerned about its vulnerability in the face of these realities, China has begun to view requirements for economic growth in terms of national security. The net effect of these changes has been a weakening of the role that trade and investment ties have long played in restraining political and security tensions in U.S.-China relations. The bilateral relationship thus appears to be entering an era in which intense strategic competition coexists with deep economic interdependence.
Read more here