Towards a more China-centred global economy? Implications for Chinese power in the age of hybrid threats
An era of hyper globalization is giving way to an age of geoeconomics wherein China seeks a decisive seat at the table.
As China continues to rise, a key question will be whether and to what extent it is able to translate economic prowess into comprehensive national power and global influence. When considering the question of hybrid threats to democratic political systems, China’s role in transforming the global economy raises two broad questions. The first relates to the scope of China’s economic power. To what extent can and will China’s rise transform the global economy in a way that amplifies its power in the age of hybrid threats and undermines liberal democratic institutions and their underlying value systems? The second relates to China’s ambitions with regard to political and social change. To what extent does China seek to undermine liberal democratic institutions and actively export or construct an alternative model?
This paper analyses the rise of a new geoeconomic world order and discusses how economic power is organized and wielded within a context of complex interdependence. It considers how the notion of interdependence has changed from a stabilizing force in international relations into a source of asymmetric power and, conversely, of vulnerability. It describes how a networked global economy produces asymmetric interdependencies that amplify economic power in the hands of states that are able to achieve a degree of network centrality. The paper explores five interrelated actions that China is taking that ultimately increase its network centrality in the global economy today:
- Cultivating resilience through indigenization
- Pursuing high-end import substitution and export promotion (“dual circulation”)
- Establishing hard and soft infrastructure hubs
- Building a narrative and a community framework
- Elaborating upon the relevant tools of economic statecraft
Ultimately, the hybrid threats resulting from China’s increasing economic power can be considered in two different ways: 1) direct, or active threats to liberal democracies stemming from the ability to impress upon or influence key economic infrastructure and actors, and 2) systemic-level threats related to the rules, values and principles on which these systems are built.
This article was published by the European Centre of Excellence for Countering Hybrid Threats.
Access the text from the Hybrid CoE website:
Towards a more China-centred global economy? Implications for Chinese power in the age of hybrid threats
Available in:
Regions and themes
ISBN / ISSN
Share
Related centers and programs
Discover our other research centers and programs
Center for Asian Studies
Asia is a nerve center for multiple global economic, political and security challenges. The Center for Asian Studies provides documented expertise and a platform for discussion on Asian issues to accompany decision makers and explain and contextualize developments in the region for the sake of a larger public dialogue.
The Center's research is organized along two major axes: relations between Asia's major powers and the rest of the world; and internal economic and social dynamics of Asian countries. The Center's research focuses primarily on China, Japan, India, Taiwan and the Indo-Pacific, but also covers Southeast Asia, the Korean peninsula and the Pacific Islands.
The Centre for Asian Studies maintains close institutional links with counterpart research institutes in Europe and Asia, and its researchers regularly carry out fieldwork in the region.
The Center organizes closed-door roundtables, expert-level seminars and a number of public events, including an Annual Conference, that welcome experts from Asia, Europe and the United States. The work of Center’s researchers, as well as that of their partners, is regularly published in the Center’s electronic journal Asie.Visions.
Find out more
Discover all our analyses
France’s maritime security cooperation in the Pacific
France plays a significant role in Pacific maritime security, particularly through the active participation of its overseas territories and the contribution of its stationed armed forces to regional cooperation initiatives.
Taiwan’s Rising Space Program: Building Up Industry, Supporting National Security
Taiwan, known for its leadership in semiconductors and information and communications technology (ICT), is now making significant strides in the space industry. While historically modest, Taiwan’s space program has seen a transformation since 2020, driven by President Tsai Ing-wen’s commitment to expanding the country’s space capabilities. Key milestones include the passage of the Space Development Act and the creation of the Taiwan Space Agency (TASA), which has bolstered the resources and visibility of Taiwan’s space ambitions.
AI and Technical Standardization in China and the EU: Diverging priorities and the need for common ground
Given the highly disruptive potential of AI, global cooperation on AI safety and governance is imperative, and yet the deeply transformational potential of AI also ensures that a high level of competition and systemic rivalry is likely unavoidable. How can the EU best manage its complex relationship with China in the field of AI so as to ensure a necessary level of cooperation in spite of competition and rivalry?
China’s Quest for a Quantum Leap
The global race to harness quantum science is intensifying. Recognizing the strategic potential of quantum technology for economic, military, and scientific advancement, China is focusing on quantum breakthroughs as a way to shift the balance of power, especially in its competition with the United States. President Xi Jinping has emphasized the importance of scientific innovation, particularly in quantum fields, to fuel national development and ensure security.