Legality, Legitimacy and Institutionalization: China’s Dilemma of Sanctions and Economic Coercion

ABSTRACT

In what ways did Beijing learn from the strategy, tactics and legality of sanction campaigns in international relations? What accounts for shifts in the Chinese thinking on sanctions in the past two decades? By analyzing the evolution of scholarly discussions about economic statecraft from 2001 to 2022, the article illustrates a dilemma: how to condemn U.S. unilateral sanctions while advocating for China’s own experimentation with economic coercion? The rising tension shifted the focus on the legality and legitimacy of U.S. sanctions to China’s own economic leverages and legal framework for coercive economic statecraft. Moreover, by muddling the distinction between defensive anti-sanctions measures and offensive use of sanctions, the new legislative development may usher China in a new phase of using coercive economic statecraft.

Acknowledgments

Numerous individuals have provided valuable comments to this research and the writing of this article. The author is especially grateful for the comments from Jessica Chen Weiss, Peter J. Katzenstein, Allen Carlson, Penny Gill as well as Suisheng Zhao and three anonymous reviewers in the process. I also acknowledge the feedbacks and questions provided by participants in the panel “Nationalism, Status, and Conflict” at the 2023 ISA conference.

Disclosure Statement

No potential conflict of interest was reported by the author(s).

Notes

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³ Darren J. Lim, Victor A. Ferguson, and Rosa Bishop, ‘Chinese Outbound Tourism as an Instrument of Economic Statecraft’, Journal of Contemporary China, 29 (126), (2020); Audrye Wong, Leif-Eric Easley and Hsin-wei Tang, ‘Mobilizing Patriotic Consumers: China’s New Strategy of Economic Coercion’, Journal of Strategic Studies, May 08, 2023.

⁴ ‘美国的霸权霸道霸凌及其危害 [U.S. hegemony, hegemonic behavior, bullying, and their harm]’, 外交部[Ministry of Foreign Affairs of the PRC], February 20, 2023. accessed April 22, 2023. https://www.fmprc.gov.cn/wjbxw_new/202302/t20230220_11027619.shtml.

⁵ Daniel W. Drezner, ‘Global Economic Sanctions’, Annual Review of Political Science 27(1), (2024), p. 10.

⁶ ibid., 11.

⁷ CNKI is the largest and most comprehensive online academic database in China.

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¹² Xufeng Zhu, ‘In the Name of “Citizens”: Civic Activism and Policy Entrepreneurship of Chinese Public Intellectuals in the Hu-Wen Era’, Journal of Contemporary China 25(101), (2016), pp. 745–59.

¹³ ibid.

¹⁴ Ning Leng and Elizabeth Plantan, ‘Disappearing Research: Academic Control and Self-Censorship in China’. [Unpublished manuscript] (2024).

¹⁵ Interview, Beijing, China, September 10, 2021.

¹⁶ 赵可金[Zhao Kejin], ‘经济外交的兴起: 内涵、机制与趋势 [The Rise of Economic Diplomacy: Connotation, Mechanism, and Trends]’, 教学与研究[Teaching and Research], 1, (2011), pp. 56–62.

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¹⁸ Some Chinese scholars preferred the translation, ‘Keeping a Low Profile and Taking a Proactive Role When Feasible’.

¹⁹ 白羽[Bai Yu], ‘美国单边经济制裁措施的法律问题研究 [Research on the Legal Issues of Unilateral Economic Sanctions of the United States]’,Master’s thesis, 西南政法大学 [Southwest University of Political Science and Law], (2020).

²⁰ 阮建平[Ruan Jianping], 战后美国对外经济制裁[Postwar U.S. Foreign Economic Sanctions], (Wuhan: Wuhan University Press, 2009), p. 6.

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²⁴ ibid.

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²⁸ He (n 25).

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³¹ 刘道纪[Liu Daoji] and 高祥[Gao Xiang], ‘美国次级制裁合法性问题研究[Study on the Legality of U.S. Secondary Sanctions]’, 南京社会科学 [Social Sciences in Nanjing]10, (2018), pp. 102–106.

³² Bai (n 19);张虎[Zhang Hu], ‘美国单边经济制裁的法理检视及应对 [Legal Review of U.S. Unilateral Economic Sanctions and Response]’, 政法论丛[Journal of Political Science and Law] 2, (April 2020): pp. 91–101.

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³⁴ Zhang (n 32).

³⁵ ibid., 94.

³⁶ 况腊生[Guo Zhouming] and 郭周明[Kuang Lasheng], ‘当前国际经济制裁的法律分析[Legal analysis of current international economic sanctions]’, 国际经济合作[Journal of International Economic Cooperation] 3, (2019), pp. 141–155.

³⁷ 宋国友[Song Guoyou],‘陷入“制裁困境”凸显美国霸权透支’ [Falling into the ‘sanction dilemma’ highlights the overextension of American hegemony], Global Times, June 9, 2022. accessed February 1, 2024. https://iis.fudan.edu.cn/e8/b4/c6897a452788/page.html.

³⁸ Yang, ‘Toward More Humane and Effective Sanctions?’

³⁹ 王林林[Wang Linlin], ‘美国对俄罗斯的经济制裁研究（2014–2019年）[A Study of U.S. Economic Sanctions Against Russia (2014–2019)]’, Master’s thesis, 湖南师范大学 [Hunan Normal University] (2020).; 阮建平[Ruan Jianping], ‘二战后美国对外经济制裁研究 [A Study of U.S. Foreign Economic Sanctions after World War II]’ Doctorate Dissertation, Wuhan University (October 2004); 阮建平[Ruan Jianping], ‘国际经济制裁: 演化、效率及新特点 [International Economic Sanctions: Evolution, Efficiency, and New Features]’, Contemporary International Relations, April 2004.

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⁴¹ ibid.

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⁴³ 方炯升[Fang Jingsheng], ‘有限的回击:2010年以来中国的经济制裁行为 [Limited Retaliation: China’s Economic Sanctions Behavior Since 2010]’, 外交评论[Foreign Affairs Review] 1, (2020), p. 81.

⁴⁴ Interview, Beijing, China, September 10, 2021.

⁴⁵ Interview, Beijing, China, September 9, 2021.

⁴⁶ C. Wright Mills, The Causes of World War Three. (Simon and Schuster, 1958).

⁴⁷ Yan (n 8).

⁴⁸ Liu Jianwei, ‘U.S.-EU Cooperation on Economic Sanctions: Characteristics, Limitations and Prospects’, China International Studies 6, (2019), pp. 167–184.

⁴⁹ Interview, Shanghai, China, August 12, 2021.

⁵⁰ Kenneth Lieberthal and Michel Oksenberg, Policy Making in China: Leaders, Structures, and Processes (Princeton, NJ: Princeton University Press, 1988), p. 340.

⁵¹ Wang (n39).

⁵² Liu and Gao (n 31) 180.

⁵³ 柳剑平[Liu Jianping] and 刘威[Liu Wei], 美国对外经济制裁问题研究: 当代国际经济关系政治化的个案分析 [A study of U.S. foreign economic sanctions: Case Analysis of Politicization of Contemporary International Economic Relations] (Beijing: People’s Publishing House, 2009).

⁵⁴ ibid.

⁵⁵ Zhao (n 16) 60.

⁵⁶ 梅新育[Mei Xinyu], ‘对日经济制裁的四大选择 [Four major options for economic sanctions against Japan]’, 中国经济周刊[China Economic Weekly], September 17, 2012, p. 19.

⁵⁷ ‘MOFCOM Order No. 4 of 2020 on Provisions on the Unreliable Entity List’, Ministry of Commerce of the People’s Republic of China. September 19, 2020. accessed April 22, 2023. http://www.xinhuanet.com/english/2020–09/19/c_139380840.html.

⁵⁸ 张辉[Zhang Hui], ‘论中国对外经济制裁法律制度的构建 – 不可靠实体清单引发的思考[On China’s Legal System of Foreign Economic Sanctions-Thoughts arising from the list of unreliable entities]’, 比较法研究[Journal of Comparative Law] 5, (2019), pp. 141–153.

⁵⁹ ibid.

⁶⁰ ibid.; Song Guoyou, ‘China’s Debates on Economic Diplomacy’, in Feng Huiyun, Kai He, and Yan Xuetong (eds), Chinese Scholars and Foreign Policy: Debating International Relations (New York: Routledge, 2019), pp. 173–190.

⁶¹ Song (n 55).

⁶² Bai (n 19); Zhang (n 58).

⁶³ Song (n 60) 183.

⁶⁴ ibid., 184.

⁶⁵ 李巍[Li Wei], ‘经济外交更需要跨部门协调[Economic Diplomacy Needs More Cross-Functional Coordination]’, 中国经济周刊[China Economic Weekly] 41, (2012).

⁶⁶ Marina Rudyak, ‘The Ins and Outs of China’s International Development Agency’, Carnegie Endowment for International Peace. September 2, 2019. accessed May 28, 2023. https://carnegieendowment.org/2019/09/02/ins-and-outs-of-china-s-international-development-agency-pub-79739.

⁶⁷ Zhang (n 58).

⁶⁸ ibid.

⁶⁹ Fang (n 43) 85.

⁷⁰ ibid., 84.

⁷¹ Mei (n 56) 19.

⁷² 梅新育[Mei Xinyu], ‘对日经济制裁的选择、原则与注意问题 [Options, Principles, and Precautions of Economic Sanctions against Japan]’,中国市场 [China Market] 42, (2012), p. 4.

⁷³ Fang (n 43) 87.

⁷⁴ Edward White and Kana Inagaki, ‘China starts “surgical” retaliation against foreign companies after US-led tech blockade’, Financial Times, April 17, 2023. accessed April 22, 2023. https://www.ft.com/content/fc2038d2-3e25-4a3f-b8ca-0ceb5532a1f3.

⁷⁵ Zhang (n 53) 152.

⁷⁶ Li Hongjia[李宏佳], Wang Hongyu[王宏禹], and Yan Zhanyu [严展宇], ‘国际公共产品供给:中国稀土产业的经济外交策略 [The Supply of International Public Goods: Strategy of China’s REO Economic Diplomacy]’, 东北亚论坛 [Northeast Asia Forum] 2, (2017), pp. 82–93.

⁷⁷ Mei (n 72) 5.

⁷⁸ ibid.

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⁸⁰ Li, Wang, and Yan (n 76).

⁸¹ Mei (n 56) 21.

⁸² Qiu (n 29) 28; Liu and Liu (n 53).

⁸³ This article makes this claim with great care since less is known about policy suggestions via private channels.

⁸⁴ ‘Foreign Relations Law of the People’s Republic of China’, The State Council of the People’s Republic of China. June 29, 2023. accessed June 30, 2023. https://www.gov.cn/yaowen/liebiao/202306/content_6888929.html.

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