ABSTRACT
This chapter examines Xi Jinping's second term (2017–2022) and the initial two years of his third term (2022–2023), providing insights into the evolving nature of his economic statecraft strategies. Xi was likely the first global leader to perceive the significant changes of our times, recognizing that the world was experiencing profound shifts not seen in a century (“百年未有之大变局”). During his second term, China's economic statecraft faced considerable challenges as the country's economy slowed significantly and its relationship with the West deteriorated. There was a notable shift in the approaches to economic statecraft between China and Western countries from Xi's first to his second term. During Xi's first term, China and the West largely adopted strategies known as positive economic statecraft, including free trade and investment agreements, as well as summits. However, in the second term, the focus shifted toward negative economic statecraft strategies, such as economic warfare, which became more prevalent. Despite these challenges, China's economic statecraft has shown resilience. It is premature to predict a complete retrenchment of China's economic statecraft, as the country possesses vast economic resources that enable it to sustain its initiatives despite increasing resistance and fatigue.
