Chapter 2: China’s Geoeconomic Diplomacy and the South China Sea Dispute: Promises and Pitfalls

The following sections are included:

• Introduction

• The Geoeconomics Theory

• Strengths of China’s Geoeconomic Strategy

  • Economic incentives and the Philippines’ “appeasement” policy

  • Trade dependence

  • Picking the low-hanging fruits

  • Energy diplomacy

  • Regulations on the development of uninhabited islands

• Challenges and Weak Spots

  • Trade and investment diversification

  • Maligned image of the BRI

  • The U.S. factor

  • Domestic forces

• Conclusion

• References