Economic and Security Review Commission

China's Foreign Policy Economic and Security Review Commission

As Beijing flexes its muscles, it has strong new tools to employ, including increased economic leverage, especially in light of the global financial crisis. Both developing and developed countries welcome Chinese trade, investment, and economic aid. Europe is actively pursuing Chinese assistance for addressing its sovereign debt crisis. And countries from Suriname to Kenya to Tonga are recipients of the fruits of China's growing economic power. So, too, are a number of "countries of concern." Yet Beijing's open arms and deep pockets raise concerns in many countries. For example, some in the developing world see Beijing's investment as a new form of colonialism while many struggle with displacement of domestic production by Chinese goods. The acquisition of resources is clearly guiding much Chinese investment, but what else will the Chinese government expect in return for its generous terms and large investments?