This paper will examine the interplay and relationship between bilateral diplomatic relations and economic relations through the lens of political factors, examining the concrete case of the Republic of Portugal and the People’s Republic of China. It will consider their common past — the nations’ historical similarities, their common aims and ideological differences, and analyze the alignment and the synergy developed in the modern era in developing common platforms of aims and will, in terms of political agenda-setting, such as through the issue of the status of the territory of Macao and the relationship with Portuguese-speaking countries (PSCs). It further analyzes the past few decades through the signing of diplomatic protocols, engaged bilateral and multilateral economic diplomacies, and growing commerce and trade links to identify the key trends and extrapolate relevant correlations. We examine the progresses in the relationship between the advancement of Sino-Portuguese diplomatic relations and the development of economic interplay post the 1979 period, following the formal establishment of bilateral diplomatic relations. We argue in favor of an existing positive correlation between acts of economic diplomacy and the development of bilateral economic relations. This paper presents a methodological, theoretical-inductive, and constructivist perspective, combining qualitative, quantitative, and non-participated observation.
