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8 will change perceptions of economics both as a means of power but also as a form of power in its own right.
As The United States and China confront each other on a wide range of issues,
economics plays a part to varying degrees, therefore perhaps the biggest question is whether or not economic coercion is a viable tool for either country influence the other and achieve
objectives. The answer to this question is reliant on many other factors, which will also need to be addressed such as: What is the nature of the Chinese-United States relationship, is it virtuous relationship marked by Keohane and Nye’s notion of complex interdependency (Keohane &
Nye, 1987) or is it a relationship that Roach calls codependency (Roach, 2014), wherein the many discernable dependencies that are in constant flux can lead to coercion or conflict aimed from one state to the other; Is the United States more dependent on China (or vice versa) or do they exist largely at parity; where are each countries weakness/strengths and in what situations would they be important. These are the questions that will drive our understanding of the Chinese-United States relationship and will help to reveal what may be coming in the future as the countries and their cooperation (or lack thereof) come to define the future of international relations.
1.3 Paper Structure
The following chapters aim to answer these questions, and provide a framework for understanding the intertwined Chinese-United States economic relationship. Chapter two provides the theoretical background for understanding the current literature as well as where there are insufficiencies, and expounds on the nature of the Chinese-United States relationship.
Chapter two also establishes the framework for studying the Chinese and United States
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9 economies for vulnerabilities by exploring Kishner’s four tools for economic coercion as well as their perspective limitations in parallel with the current literature on dependence and
interdependence mainly through the work of Nye and Keohane. Chapter three undertakes the necessary preliminary research to dig deeper into the Chinese-United States economic
relationship, and thereby revealing strengths and weakness both countries’ economies exhibit. In parsing through the economic data that is relevant to Kishner’s four tools for economic coercion for dependencies (mutual or asymmetrical) it becomes clear that power is split between the United States. The concluding chapter makes the argument for further study as well as provides two case studies in which economic coercive action can be observed and used to confirm or reject the claims laid out in chapter three.
However, to provide the fullest picture and further test the hypothesizes Chapters Four and Five explore case studies. Chapter Four focuses on China’s potential for monetary power by looking at the time period surrounding Chinas shock revaluation of the renminbi in 2015 before their ascension to world reserve currency status. Chapter Five follows the time period before and after the passing of Public Law 112-99 and the World Trade Organization proceedings that followed. In looking at these case studies the research reveals the difficulties that exist in the practical use of economic leverage even in two countries where theoretical advantages are a stark as those that exist between China and the United States.
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Chapter Two: Theoretical Analysis and Methodological Framework
Much of the research into growing Chinese influence in both Asia and the world explores economic growth as a means of power accumulation rather than its own tool for statecraft. In this chapter it becomes clear why this research, while useful, only tells a small part of the story while ignoring some major problems that have large implications for the Chinese-United States relationship. While not an outright repudiation of the current literature it complicates the notion of economic growth as an absolute indicator of growing power ignoring possible vulnerabilities that such economic growth can create.
Furthermore, instead of looking at the Chinese-United States economic relationship retroactively through the two countries relative power positions, this chapter lays out a framework to reveal the nature of the complex Chinese-United States relationship based on economic makeup first and foremost. This is achieved by looking at the literature on economic coercion and statecraft as well as the changing nature of “dependence” in an increasingly interdependent and interconnected world. Utilization of this literature both shows how the economic leverage can be its own form of power, as well providing a framework that will be used in the following chapters to dig deeper into the Chinese-United States economic
relationship and make predictions that can be tested by looking at case studies.
This Chapter first outlines the broad theoretical groundwork for this research as well as showcases its usefulness for policy makers and scholars, then it gives details on the economic coercion theories this paper uses to analyze the Chinese-United States economic relationship.
Lastly, this chapter answers the first of the research questions regarding the nature of the Chinese-United States relationship by expounding on inter-dependency as outlined by Keohane
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11 and Nye and as developed by Roach and others. According to these measures this chapter
provides the bases to call the relationship and co-dependent although somewhat uneasy relationship.