![]() ![]() The connection between Chinese companies and the CCP is fundamentally different from that of Western companies and their governments. ![]() As Chinese firms seek to-and are encouraged by the government to-expand into foreign markets, the unique structure of China’s party-state apparatus offers Beijing the levers to wield significant influence over Chinese corporate entities and, through the potential manipulation of these entities, the policies of the target country. “Understanding Chinese Corporate Structures,” Sayari Learn, accessed September 23, 2023. 3 All Chinese companies must report basic information to the State Administration of Market Regulation’s National Enterprise Credit Information Publicity System. Corporate entities based in China play an essential role in expanding the country’s economic engagement. Corporate entities in Chinese economic statecraftĭespite its recent economic difficulties, China’s size ensures that it will remain a center of economic activity for the foreseeable future. For an example of the latter, see Kenton Thibaut, China’s discourse power operations in the Global South, Atlantic Council, April 20, 2022. ![]() 2 In this report, influence or economic influence refers to the ability of a state to alter the policy behavior of a target state or entity through the manipulation of economic measures this is not to be conflated with influence operations through social media, disinformation, or related propaganda or discourse manipulation efforts. To that end, this report explores avenues through which researchers can investigate these issues, considers industries that could be vulnerable to future coercion and influence, and offers policy recommendations to counter China’s economic statecraft. Understanding the reach and role of such entities is, therefore, key to identifying where Beijing might be best positioned to advance its economic statecraft. Beijing’s preference for plausible deniability and nontransparency in theory makes corporate entities an attractive mechanism through which to signal its displeasure and to achieve strategic goals. 1 For more on the coercive potential of global economic interdependence, see Henry Farrell and Abraham Newman, “Weaponized Interdependence: How global economic networks shape coercion,” International Security 44 (1) (2019): 42–79. The deliberate use of economic ties to achieve geopolitical objectives is underpinned by corporate entities that facilitate trade, investment, and financial flows. Intensifying US-China strategic competition and Beijing’s increasingly overt attempts to assert its preferences only further emphasize the importance of confronting China’s use of economic coercion and influence and understanding the reach of Chinese companies. Economic statecraft-the use of economic means to pursue foreign policy goals-has been a consistent feature of Xi’s dealings with CCP competitors and adversaries. Chinese President Xi Jinping and the Chinese Communist Party (CCP) are willing to use every means at their disposal to achieve this goal, bringing the full force of the party-state to bear in support of Xi’s objectives abroad and against perceived enemies of the Chinese government. NovemInvestigating China’s economic coercion: The reach and role of Chinese corporate entitiesĬorporate entities in Chinese economic statecraftĮxploring Chinese corporate entities and links to influenceĬhina’s economic statecraft has expanded in line with Beijing’s vision for an international environment that is more conducive to its interests.
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