The People’s Republic of China’s economic coercion in the Indo-Pacific

Executive summary

  • The People’s Republic of China (PRC) continues to use trade as a tool to coerce other countries if they criticise or support critics of the Chinese Communist Party (CCP), or refuse to acknowledge Beijing’s expansionist territorial claims.
  • Australia, Japan and Taiwan have each defied Beijing’s economic coercion by diversifying markets, avoiding escalation and reinforcing partnerships. Canberra’s commitment to free trade and use of international institutions, Japan’s ‘small yard, high fence’ strategy and Taiwan’s New Southbound Policy offer example solutions.
  • The United Kingdom (UK) and other countries can mitigate any future Chinese economic pressure by strengthening economic security and proving their resilience. In doing so, His Majesty’s (HM) Government would be wise to consult and learn from Indo-Pacific partners.

About the author

Gray Sergeant is a Research Fellow in Indo-Pacific Politics at the Council on Geostrategy.

Robert Walker is a Research Fellow in the Indo-Pacific Development Centre at the Lowy Institute.

Athena Tong is a Visiting Researcher in the Economic Security Intelligence Lab at the RCAST, University of Tokyo.

Ming-Min Yang is an Assistant Research Fellow at the Chung-Hua Institution for Economic Research.

Disclaimer

This publication should not be considered in any way to constitute advice. It is for knowledge and educational purposes only. The views expressed in this publication are those of the author and do not necessarily reflect the views of the Council on Geostrategy or the views of its Advisory Council.

Image credit: Double exposure of China flag, coins stacking and investment graph chart, Dilok Klaisataporn, Canva Pro Licence

No. 2025/11 | ISBN: 978-1-917893-02-2

Gray Sergeant is a Research Fellow in Indo-Pacific Geopolitics at the Council on Geostrategy. He is also a PhD candidate in the Department of International History at the London School of Economics (LSE). His academic work focuses on British-American diplomatic relations towards the People’s Republic of China during the early Cold War. He previously studied International Relations and History at the LSE before completing a Masters in Chinese Politics at the School of Oriental and African Studies (SOAS). He has spent time in Taiwan, first as a Mandarin language student at National Taiwan University and then as a Human Rights and Democracy Fellow at the Taiwan Foundation for Democracy. He co-founded, and is currently chair of, Hong Kong Watch.