{"id":43795,"date":"2018-06-14T20:40:15","date_gmt":"2018-06-14T20:40:15","guid":{"rendered":"https:\/\/one.sightlinemg.com\/defensenews\/uncategorized\/2018\/06\/14\/report-offers-tips-on-combating-chinese-economic-policy\/"},"modified":"2026-08-07T23:38:26","modified_gmt":"2026-08-07T23:38:26","slug":"report-offers-tips-on-combating-chinese-economic-policy","status":"publish","type":"post","link":"https:\/\/one.sightlinemg.com\/defensenews\/global\/asia-pacific\/2018\/06\/14\/report-offers-tips-on-combating-chinese-economic-policy\/","title":{"rendered":"Report offers tips on combating Chinese economic policy"},"content":{"rendered":"\n<p class=\"wp-block-paragraph\">WASHINGTON \u2015 Chinese economic coercion could have broad implications for the United States\u2019 Asia policy, according to a report by the Center for a New American Security. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The authors of the CNAS report say China uses economic measures under a narrow set of circumstances related to territorial claims, Chinese domestic politics or other identified \u201ccore interests.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Territorial disputes, particularly in the<a href=\"https:\/\/www.defensenews.com\/naval\/2018\/06\/04\/us-moves-to-justify-sail-by-operations-in-south-china-sea\/\"> South China Sea<\/a>, with Japan and the Philippines have stimulated economic responses from China in recent history.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/digital-show-dailies\/navy-league\/2018\/04\/09\/sri-lanka-cedes-major-port-to-china-fueling-tensions\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"191\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/GettyImages-464082420.jpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Sri Lanka cedes major port to China, fueling tensions<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Why has Sri Lanka, an island nation in the Indian Ocean the size of West Virginia, become another flashpoint in regional naval competition.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">In 2010, after a Japanese patrol boat detained the captain of a Chinese trawler with which it collided near the disputed Senkaku (or Diaoyu) island chain, Beijing ceased exports of rare earth metals to Japan. Rare earth metals are vital for Japanese companies that make high-tech products such as electric vehicles, mobile phones and batteries.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">The dispute flared up again in 2012 after Japan purchased several islands in the chain from a private owner, sparking Chinese state-run media to encourage boycotts of Japanese goods.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As China and the Philippines clashed over the Scarborough Shoal in 2012, China implemented stricter sanitation inspections of imported Filipino bananas. China made additional cuts to tourism to the Philippines in an apparent attempt to coerce the country into concessions. After Rodrigo Duterte was elected in 2016, he acquiesced to some of China\u2019s demands over the shoal to obtain fiscal relief from import restrictions on bananas and other products, according to the report. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Upset with South Korea\u2019s decision to field U.S.-made <a href=\"https:\/\/www.defensenews.com\/land\/2018\/04\/06\/army-missile-defense-systems-patriot-and-thaad-talk-in-test\/\">Terminal High Altitude Air Defense<\/a> missile defense systems in 2017, China reduced tourist groups to South Korea, temporarily limited imports and threatened South Korean companies with further restrictions.<\/p>\n\n\n\t<aside class=\"smg-interstitial-link wp-block-smg-interstitial-link\">\n\t\t<a href=\"https:\/\/one.sightlinemg.com\/defensenews\/smr\/space-missile-defense\/2017\/08\/03\/politics-both-home-and-abroad-drive-south-korea-thaad-deployment\/\" class=\"smg-interstitial-link__inner\">\n\t\t\t\t\t\t\t<div class=\"smg-interstitial-link__media\">\n\t\t\t\t\t<img loading=\"lazy\" decoding=\"async\" width=\"300\" height=\"200\" src=\"https:\/\/one.sightlinemg.com\/wp-content\/uploads\/2026\/08\/636040219336586024-thaadprotestjpg.jpg?w=300\" class=\"smg-interstitial-link__image wp-post-image\" alt=\"\" \/>\t\t\t\t<\/div>\n\t\t\t\t\t\t<div class=\"smg-interstitial-link__content\">\n\t\t\t\t<span class=\"smg-interstitial-link__kicker\">Related<\/span>\n\t\t\t\t<h3 class=\"smg-interstitial-link__title\">Politics, both home and abroad, drive South Korea THAAD deployment<\/h3>\n\t\t\t\t\t\t\t\t\t<p class=\"smg-interstitial-link__excerpt\">Following North Korea\u2019s July 28 launch of what the Pentagon has termed an ICBM, the South Korean government has had an apparent change of heart about the THAAD system.<\/p>\n\t\t\t\t\t\t\t<\/div>\n\t\t<\/a>\n\t<\/aside>\n\t\n\n\n<p class=\"wp-block-paragraph\">Although these policies have not deterred South Korea from deploying THAAD, the Bank of Korea estimated these coercive measures decreased South Korean 2017 economic growth by half a percent. According to CNAS\u2019 report, one South Korean research institute estimated in September 2017 that the cost of South Korean tourism restrictions alone could cost the country upward of $15 billion. <\/p>\n\n\n\n<p class=\"wp-block-paragraph\">As China continues to execute its <a href=\"https:\/\/www.defensenews.com\/naval\/2018\/04\/23\/incoming-us-pacific-command-chief-wants-to-increase-presence-near-china-isr-capabilities\/\" title=\"\" class=\"\" target=\"_blank\">One Belt One Road Initiative<\/a> \u2015 a estimated $1 trillion project that will encompass roughly 70 countries and 32 percent of global gross domestic product \u2015 the report cautions China will gain even more economic leverage to influence smaller states standing in the way of Chinese foreign policy interests.<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">To combat and mitigate the growing threat of Chinese economic coercion, the authors recommend the U.S. create a cross-agency group focusing on Chinese economic statecraft intelligence to develop \u201coperational analysis of economic coercion and scenario planning or war-gaming possible future instances of Chinese economic coercion significant to U.S. interests.\u201d<\/p>\n\n\n\n<p class=\"wp-block-paragraph\">Other possible solutions, according to the report, include cultivating deeper trade relations with countries that are vulnerable to Chinese economic coercion; in essence. reducing China\u2019s leverage by providing an alternative market and diversifying sources of tourism by lowering visa requirements for short-term visits. <\/p>\n","protected":false},"excerpt":{"rendered":"<p>Boasting the world&#8217;s second-largest economy, China is well-primed to influence smaller economic players in the Asia-Pacific region.<\/p>\n","protected":false},"author":7,"featured_media":82908,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_yoast_wpseo_meta-robots-noindex":"","_yoast_wpseo_meta-robots-nofollow":"","_yoast_wpseo_canonical":"","_acf":"","_yoast_wpseo_primary_category":45,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","_smg_distribution_targets":[]},"categories":[45,160,11,36],"tags":[],"coauthors":[1233],"class_list":["post-43795","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-asia-pacific","category-daily-news-roundup","category-global","category-newsletters"],"acf":{"subheadline":"","legacy_arc_id":"K5PPVHROCNF7BA7SQHFRAMFF7Q","arc_canonical_url":"\/global\/asia-pacific\/2018\/06\/14\/report-offers-tips-on-combating-chinese-economic-policy\/","remove_feature_photo":false,"is_sponsored":false,"subtype":"","redirect_url":"","disable_inline_ads":false,"native_logo_pretext":"Presented 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