Weaponized Interdependence and Chinese Economic Statecraft in Europe

Recent research in International Relations (IR) has shown how powerful states can leverage their position in global informational and financial networks for strategic advantage. Highly asymmetric networks, which exist today in areas such as finance, energy, transit, and information technology, are an important source of influence for powerful states. Thus, while contemporary globalization produces many economic benefits and has made the world more interdependent, powerful states can, as Farrell and Newman argue, “weaponize interdependence.” This paper applies this new framework, which explains how states can leverage asymmetries in interdependence and how global economic networks increasingly shape state coercion, to study Chinese economic statecraft in the European Union (EU). It examines the extent to which China has sought to “weaponize” its interdependence with European countries and evaluates two areas that may be vulnerable to “chokepoint” and “panopticon” effects: telecommunications and transit. A better understanding of these issues will inform contemporary policy debates, including over 5G infrastructure and the implementation of screening mechanisms for incoming foreign direct investment (FDI) in strategic industries in the EU, such as artificial intelligence, energy, aerospace, defense, and nano- and biotechnologies. The paper will also examine strategies EU target states may implement to resist or mitigate the effects of weaponized interdependence.