Counter-order: Chinese Power, the West and Geo-economics

The United States (US)-led world order that has prevailed for the past few decades is being contested by rival powers such as China. A crucial aspect of great power competition is economic statecraft and China is skilfully fusing various aspects of its economic diplomacy and financial strength to undermine the US and its allies. China’s rise occurs in a specific context: the looming challenge of a more decentralised global economy marked by non-state actors and alternative currencies. Maintaining the US’ dollar dominance has emerged as a key plank of Washington’s overall grand strategy toward China, but the West still needs to collectively develop a coherent strategy for economic statecraft. This Policy Brief outlines and analyses the prevailing global economic context, the counter-order being developed by China and the growing importance of geo-economics for Western countries.