China, uses access to its massive economy as a way to coerce states that go against the regime’s wishes.

Economic coercion has become a significant element of China's foreign policy, serving as a tool to penalize countries perceived as challenging its national interests or the legitimacy of the Chinese Communist Party (CCP). An illustrative example occurred in 2021 when China responded to the announcement of a Taiwanese Representative Office in Lithuania by suspending permits for Lithuanian food imports. Similarly, in 2020, China retaliated against Canberra's calls for a World Health Organization-led inquiry into the origins of the coronavirus by halting imports of Australian beef, barley, and other products. This followed restrictions on coal imports in response to Australia's exclusion of Huawei from its domestic 5G infrastructure.

 

Rather than resorting to formal economic sanctions, which China has long criticized as tools of Western hegemony, the country imposes costs on targeted nations through informal methods. For instance, to justify an import ban on foreign agricultural products, China often alleges the presence of pests or other ecological threats. These measures provide China with a level of plausible deniability, making it challenging for targeted countries to pursue legal action, while also adhering to its principled opposition to formal sanctions.

 

Despite the evident harm caused by these punitive measures, they have proven relatively ineffective in persuading targeted countries to align their behavior with China's interests.