ABSTRACT
This chapter delves into China's classical economic statecraft, examining the principles of Confucius and Mencius. The core philosophy underpinning China's classical economic statecraft, rooted in Confucian ethics, focused not on profit but on morality and the sustenance of the Tributary System, which prevailed for over 2000 years (202 BCE to the end of the 19th century CE). In essence, ancient Chinese economic statecraft aimed to uphold a morality-based international order, reinforced through the Tributary System. The Tributary System represents a fundamental aspect of ancient East Asian international relations, serving as a pivotal diplomatic and economic institution throughout Chinese history. However, China's classical economic statecraft faced an inherent problem: overstretching. Maintaining a morality-based international order through the Tributary System was costly, and constant tensions existed between wealth and power.
