The Chinese Communist Party (CCP) is increasingly deploying coercive diplomacy against foreign governments and companies. Coercive diplomacy isn’t well understood, and countries and companies have struggled to develop an effective toolkit to push back against and resist it.
This report tracks the CCP’s use of coercive diplomacy over the past 10 years, recording 152 cases of coercive diplomacy affecting 27 countries as well as the European Union. The data shows that there’s been a sharp escalation in these tactics since 2018. The regions and countries that recorded the most instances of coercive diplomacy over the last decade include Europe, North America, Australia, New Zealand and East Asia.
The CCP’s coercive tactics can include economic measures (such as trade sanctions, investment restrictions, tourism bans and popular boycotts) and non-economic measures (such as arbitrary detention, restrictions on official travel and state-issued threats). These efforts seek to punish undesired behaviour and focus on issues including securing territorial claims, deploying Huawei’s 5G technology, suppressing minorities in Xinjiang, blocking the reception of the Dalai Lama and obscuring the handling of the COVID-19 pandemic.
China is the largest trading partner for nearly two-thirds of the world’s countries, and its global economic importance gives it significant leverage. The impacts of coercive diplomacy are exacerbated by the growing dependency of foreign governments and companies on the Chinese market. The economic, business and security risks of that dependency are likely to increase if the CCP can continue to successfully use this form of coercion.