China’s Coercive Diplomacy and the Challenges to Global Governance

Abstract

China’s foreign policy has been increasing massively in recent years, accompanied by the use of coercive diplomacy to alter other states’ behaviour. To align with its interests, China has set up some strategies through the use of threats or limited force in diplomatic persuasion, such as economic leverage (trade restrictions and investment limitations), political pressure, as well as diplomatic tactics. It is interesting to note that the coercive diplomacy employed by China has different specific targets and impacts. Thus, this research aims to examine the challenges caused by China’s coercive diplomacy, which has eroded the global norms. This research will also analyze the comparison of the implementation of China’s economic coercion against its rivals in the Indo-Pacific region, Australia and Japan, as a comparative case study. In the implementation, China has also had a unique approach by choosing different sectors with different motives. While Australia has faced targeted economic sanctions and trade restrictions, on the contrary, Japan has experienced territorial disputes and maritime incidents, sometimes leading to economic pressure. Meanwhile, there are similar responses from both countries by showing resilience and diversifying their economies and partnerships to mitigate China's influence. The result showed China’s influence has weakened current global governance norms and institutions, however, it creates a stronger collective resilience among targeted countries.