Never Let a Crisis Go to Waste
This chapter examines four Chinese economic statecraft initiatives across Western Europe. It starts with Beijing’s “purchasing diplomacy”: the public presentation of investments and purchases by major Chinese enterprises in the wake of Europe’s financial crisis. It next turns to China’s financial statecraft, examining Beijing’s purchases of euro-denominated debt and support for the EU’s currency stabilization efforts. Despite domestic criticism of both initiatives, Chinese policymakers effectively incentivized and coordinated among banks and economic agencies. The third case examines Beijing’s promotion of RMB internationalization in Europe. Policymakers successfully leveraged competition among Europe’s financial capitals to secure political support for Beijing’s policy objectives. The final case provides an example of infrastructure investment by a state-owned enterprise: COSCO’s massive investment into the Greek port of Piraeus. Despite successful implementation, Beijing’s economic statecraft exacerbated populist anxieties, undermining China’s foreign policy goals in Western Europe.