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Economic statecraft in China’s New Overseas Special Economic Zones: Soft power, business, or resource security?

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  • Bräutigam, Deborah
  • Tang, Xiaoyang

Abstract

China’s growing economic engagement with other developing countries has aroused heated debates. Yet there has been relatively little research on when, how, and why the Chinese state intervenes in the overseas economic activities of its firms. We examine China’s program to establish overseas special economic zones as one tool of Beijing’s economic statecraft. We trace the process by which they were established and implemented, and we investigate the characteristics of the 19 initial zones. China’s state-sponsored economic diplomacy in other developing countries could play three major strategic roles: strengthening resource security, enhancing political relationships and soft power, and boosting commercial opportunities for national firms. We conclude that even in countries rich in natural resources, the overseas zones are overwhelmingly positioned as commercial projects and represent a clear case of the international projection of China’s developmental state. In Africa (but not generally elsewhere), they also enhance China’s soft power.

Suggested Citation

  • Bräutigam, Deborah & Tang, Xiaoyang, 2012. "Economic statecraft in China’s New Overseas Special Economic Zones: Soft power, business, or resource security?," IFPRI discussion papers 1168, International Food Policy Research Institute (IFPRI).
    • Handle: RePEc:fpr:ifprid:1168
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    File URL: https://hdl.handle.net/10568/153831
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    Cited by:

    1. Sina Hardaker, 2020. "Embedded Enclaves? Initial Implications of Development of Special Economic Zones in Myanmar," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 32(2), pages 404-430, April.
    2. Li, Jizhong & Jiang, Fuming & Shen, Jie, 2016. "Institutional distance and the quality of the headquarters–subsidiary relationship: The moderating role of the institutionalization of headquarters’ practices in subsidiaries," International Business Review, Elsevier, vol. 25(2), pages 589-603.
    3. Christian Milelli & Alice Nicole Sindzingre, 2013. "Chinese Outward Foreign Direct Investment in Developed and Developing Countries: Converging Characteristics?," Post-Print hal-01411752, HAL.
    4. Brian Blankenship & Renanah Miles Joyce, 2020. "Purchasing Power: US Overseas Defense Spending and Military Statecraft," Journal of Conflict Resolution, Peace Science Society (International), vol. 64(2-3), pages 545-573, February.
    5. Luping Bao, 2026. "Does the National Level Development Zone foster cities’ innovation capacity? A study from China," PLOS ONE, Public Library of Science, vol. 21(2), pages 1-20, February.
    6. Bernabé Malacalza, 2019. "What LED to the Boom? Unpacking China's Development Cooperation in Latin America," World Affairs, John Wiley & Sons, vol. 182(4), pages 370-403, December.
    7. Roberta Arbolino & Raffaele Boffardi & Mariangela Bonasia & Luisa Simone & Antonio Lopes, 2025. "Regional industrial competitiveness: tales of success and failures from European regions," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 74(1), pages 1-40, March.
    8. Shi, Buchao & Huang, Liangxiong & Wei, Shengmin & Geng, Xinyue, 2022. "Overseas industrial parks and China's outward foreign direct investment," Journal of Asian Economics, Elsevier, vol. 83(C).
    9. Cheche Duan & Yicheng Zhou & Dehong Shen & Shengqiao Lin & Wei Gong & József Popp & Judit Oláh, 2021. "The Misunderstanding of China’s Investment, and a Clarification: “Faustian Bargain” or “Good Bargain”? On the OFDI Data of Central and Eastern Europe," Sustainability, MDPI, vol. 13(18), pages 1-25, September.

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