19 May 2025, NIICE Commentary 11008
Kanimozhi K.
China's current foreign policy is profoundly influencing the international order by actively seeking to reshape global governance, economic norms, and the balance of power. This is not just about incremental changes but a strategic push to create an order that better accommodates China's rising power and its vision for global affairs. This approach is driven by a combination of its growing economic and military power, its desire for national rejuvenation, and a perception that the existing international system, largely shaped by Western powers, needs reform.
China's Evolving Foreign Policy
Through the "Major Country Diplomacy" under Xi Jinping, China explicitly seeks to play a greater leadership role in global affairs. This involves active participation in international forums, advocating for its own initiatives, and challenging what it perceives as outdated norms. The "Community with a Shared Future for Mankind" is a grand vision, posits a world of interconnectedness and shared challenges that require cooperation rather than confrontation. Additionally, "New Type of Great Power Relations", initially proposed for US-China relations, as a cooperative partnership, trying to find a completely new way for the new type of great power relations, which would be unprecedented in history and open up the future, emphasises mutual respect, non-confrontation, and win-win cooperation. However, its implementation has been challenging amidst growing strategic competition. The "Chinese Dream" and its foreign policy implications present how Xi's vision for national rejuvenation shapes China's external behaviour and its interactions with other nations. China's ''Wolf Warrior diplomacy" represents a significant shift from traditional, more reserved Chinese diplomatic practices, reflecting Beijing's determination to defend its interests in a more uncompromising manner.
China's Influence and Relations with Key Regions
China's relationship with the US is characterized by intense strategic competition across economic, technological, and ideological domains. While areas of cooperation exist on global issues like climate change and public health, fundamental disagreements over trade practices, human rights, Taiwan, and regional security continue to drive an adversarial dynamic. Southeast Asia is a critical region for China, both economically and geopolitically. Beijing prioritizes strengthening economic ties and promoting regional integration. However, the South China Sea disputes remain a significant point of contention, leading many ASEAN nations to pursue a delicate balancing act between engaging with China (economically) and other powers, (including US) to maintain strategic autonomy.
China’s engagement with African countries is underscored mainly by economic and political considerations and is largely focused on infrastructure development, resource extraction, trade, and investment. However, concerns about debt sustainability, the environmental impact of projects, and the social implications of Chinese presence continue to rise. The EU views China simultaneously as a cooperation partner, a negotiating partner, an economic competitor, and a systemic rival. While European businesses maintain significant investments in China, growing concerns over China's economic practices and its stance on the war in Ukraine have led the EU to adopt a "de-risking" strategy.
China has significantly expanded its economic and political footprint in Latin America over the past two decades, becoming a major trading partner and source of investment and lending often through the BRI. This growing presence challenges traditional U.S. influence. China assesses the Middle East in its global strategy, its foremost national interest always lies in energy security as it is a major importer of oil from the region. Beijing also seeks to enhance its economic presence through BRI investments. While China avoids military intervention, its growing economic and diplomatic weight is reshaping regional dynamics.
China and Russia share a "no-limits" strategic partnership that is underpinned by a shared desire to counter perceived Western hegemony and promote a more multipolar world order. Bilateral trade has surged and the two countries frequently coordinate positions in multilateral forums, forming a significant bloc against the existing international system. China's approach to the Indo-Pacific is characterized by assertive actions to expand its influence and secure its perceived territorial claims, particularly in the South China Sea. This includes extensive maritime activities, military modernization, and infrastructure development across the region. A more aggressive China has resulted in the revival of the Quadrilateral Security Dialogue and the announcement of a trilateral security pact (AUKUS).
China's Role in Global Governance and International Institutions
China's foreign policy is having a profound and multifaceted influence, leading to shifts in the global landscape through various means. Challenging US hegemony and promoting multipolar, China openly seeks to balance US power and reduce what it views as US dominance in the international system. It champions a multipolar world where various powers, including China, have significant influence. This competition is evident in various domains, from trade and technology to military and ideological narratives.
China also plays a major role in reshaping economic architecture through various investment and infrastructure projects such as the Belt and Road Initiative. It is a monumental infrastructure and connectivity initiative that spans across continents and is crucial in expanding China's influence, establishing strategic partnerships, and shaping regional and global power dynamics. The controversial notion of "Debt-Trap Diplomacy" is noted through its BRI projects, China stands accused of putting poorer countries at a high risk of the debt trap. The Digital Silk Road (DSR) is essential in decoding the DSR's role in expanding China's technological influence, particularly in telecommunications, artificial intelligence, and digital infrastructure, and its implications for data governance and security.
China is actively seeking to reform existing international institutions like the UN and WTO to better reflect its growing influence and interests. The establishment of alternative financial institutions such as the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB) offers alternatives to Western-dominated financial institutions like the World Bank and IMF, increasing China's voice in global finance. By promoting RMB Internationalization, China is gradually pushing for greater use of its currency, the Renminbi (RMB), in international trade and finance, aiming to reduce reliance on the US dollar.
It is also reforming global governance and norms by emphasising on "Development" over "Democracy" as China often frames its international engagement around economic development and poverty alleviation, which resonates strongly with many developing countries, offering an alternative model to Western liberal democratic norms.
China positions itself as a leader and the greater voice of the Global South, advocating for the interests of developing countries in international forums and often aligning with them on issues of sovereignty and non-interference. Beijing is actively involved in setting global standards for emerging technologies like 5G and artificial intelligence, seeking to promote its own technological models and potentially influence and shape future digital governance.
China is forging closer strategic partnerships with countries like Russia, Iran, and some Central Asian states, often based on shared interests in challenging the existing liberal international order. Additionally, Beijing is investing heavily in soft power initiatives and cultural diplomacy, including cultural exchanges, media outreach, and educational programs (e.g., Confucius Institutes), to enhance its global image and narrative. And through disinformation and influence operations, China uses information warfare and influence operations to shape international narratives.
Conclusion
China is not simply integrating into the existing world order; it is actively seeking to reshape it. It has altered the global balance of power and triggered a discourse centred on the inevitability of a conflict between an existing power and an emerging one. The nation’s current foreign policy is leading to a more multipolar world, where its growing influence presents both opportunities for cooperation on global challenges and challenges to the existing liberal international order.
Kanimozhi K is a Research Intern at NIICE, and she is currently pursuing her M.A. in International Relations at Loyola College, Chennai, India.
