China’s Economic Diplomacy: Concept, Organization, Implementation Mechanisms and the BRI

Li Xiangyang (李向阳)*

National Institute of International Strategy, Chinese Academy of Social Sciences (NIIS CASS), Beijing, China

Abstract: Based on the existing research regarding China’s economic diplomacy, this study creates a theoretical structure for economic diplomacy with Chinese characteristics that encompasses soft power, the two competitive concepts of justified ought and self interests, and the Belt and Road Initiative (BRI). By introducing soft power, this paper argues that the goal of economic diplomacy with Chinese characteristics for the new era is to achieve the conversion of hard power to soft power. Unlike the “carrot and stick” principle often followed by Western powers in their economic diplomacy with political strings attached, the conversion between hard power and soft power in China’s economic diplomacy hinges upon the two competitive concepts of justified ought and self interests, which is the basic principle that guides China’s economic diplomacy overall. We argue that in creating an implementation mechanism for China’s economic diplomacy, policymakers must consider China’s unique national condition as a large economy not yet rich in per capita terms, while drawing upon the experiences of other major nations.

Keywords: Chinese economic diplomacy, soft power, the greater good, national self-interest, the Belt and Road Initiative (BRI)

JEL Classification Code: F02

DOI: 10.19602/j.chinaeconomist.2022.05.02