Posted in

Amid the diplomatic row, China’s economic leverage over Canada is greatly exaggerated

More often than not, when China is involved in a confrontation – whether it be a military, economic or political row – it is assumed that Beijing has the upper hand, or that the country is in a more advantageous position than its foe.

Indeed, given the expectation that China will surpass the United States as the world’s largest economy in the not-too-distant future, the fact that it boasts the world’s largest military, and its history of rather successfully leveraging global dependencies on crucial goods to navigate disputes, it makes sense why China’s ability to out-escalate and prevail in adversarial situations is presented as a sort of fait accompli. However, this thinking is flawed and it certainly does not apply to Beijing’s continuing row with Canada.

Interesting as the impression to date is that Canada would be mauled by ChiCom retaliation and therefore we should meekly kowtow to Xi. Was that just the China Class crying wolf to protect their financial interests?

Share