| Summary: | Approved for public release; distribution is unlimited === This study considers the triggers that may cause China to use economic coercion in bilateral state disputes. The literature reviewed shows that economic statecraft and coercion is a viable policy tool for shaping an opposing state’s behavior and the degree to which a state holds an asymmetrical economic advantage influences its ability to wield this tool. China’s rising power has made the study and understanding of the conditions under which China will utilize economic coercion an imperative as more states become vulnerable to it. China has already revealed that it is willing to shape state behavior through economic carrots and sticks. As demonstrated by the case studies explored in this thesis, China uses economic coercion to defend its territorial integrity and sovereignty and its understanding of the status quo. Where it holds an economically asymmetrical advantage, China has targeted specific sectors for coercion as a way to signal resolve. As Chinese economic power continues to rise relative to regional neighbors and the U.S., the feasibility of using economic coercion also increases, making the future employment of economic coercion likely wherever China perceives a threat to its interests that is cannot be solved with its increasing military might.
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