Economic Coercion as Foreign Policy Signalling: China’s Punitive Measures Against France, 2008–2009
Abstract
This case study examines China’s use of informal economic coercion against France during the 2008 Tibet crisis. Drawing on official Chinese statements, trade data, and bilateral agreements, the case study traces events from March 2008 to late 2009 and highlights Beijing’s efforts to enforce political red lines while presenting its actions as a defensive response. Measures included suspending diplomatic engagements, consumer boycotts targeting French companies, and stalled commercial deals. Framed in terms of national sovereignty, these measures illustrate how China leverages trade, market access, and nationalist sentiment to punish target states and deter similar actions by others.
Keywords
Economic coercion, economic statecraft, geoeconomics,, consumer boycotts, diplomatic retaliation, Tibet, Dalai Lama, China, France
Author Biography
Maria Papageorgiou
Maria Papageorgiou is a Leverhulme Early Career Fellow at Newcastle University, United Kingdom.
Panagiotis Palaios
Panagiotis Palaios is an Assistant Professor of Economics and Economic Program Coordinator at Deree – The American College of Greece.
References
- Ayson, Robert, and Brendan Taylor. “Carrying China’s Torch.” Survival 50, no. 4 (2008): 5–10.
- Balducci, Giuseppe. “The Limits of Normative Power Europe in Asia: The Case of Human Rights in China.” East Asia 27 (2010): 35–55.
- Beijing Review. “China Postpones Summit with EU Due to French Leader's Planned Meeting with Dalai Lama.” November 27, 2008. https://www.bjreview.com/quotes/txt/2008-11/27/content_168605.htm?utm_
- Blanchard, Jean-Marc F., and Norrin M. Ripsman. “A Political Theory of Economic Statecraft.” Foreign Policy Analysis 4, no. 4 (2008): 371–98.
- Caffrey, Katherine, ed. The Beijing Olympics: Promoting China. London: Routledge, 2011.
- Carrefour. 2009. Financial Report 2009. Carrefour Group. https://ddd.uab.cat/pub/infanu/29485/iaCARREFOURa2009ieng.pdf.
- Central Tibetan Administration. 2008a “French President Meets His Holiness the Dalai Lama.” December 7, 2008. https://tibet.net/french-president-meets-his-holiness-the-dalai-lama/.
- Central Tibetan Administration. 2008b. “His Holiness the Dalai Lama to Visit Buddhist Institute, Pagoda.” August 12, 2008. https://tibet.net/his-holiness-the-dalai-lama-to-visit-buddhist-institute-pagoda/.
- China Daily. 2008a. “France Urged to Reflect upon Chinese Public’s Opinions.” April 14, 2008. https://www.chinadaily.com.cn/china/2008-04/15/content_6619243.htm?utm.
- China Daily. 2008b. “China Welcomes Carrefour’s Stance.” April 23, 2008. https://www.chinadaily.com.cn/olympics/2008-04/23/content_6637911.htm?utm_.
- Chinese Embassy in the Republic of Cyprus. “Foreign Ministry Spokesperson Liu Jianchao's Regular Press Conference.” December 4, 2008. http://cy.china-embassy.gov.cn/eng/fyrth/200812/t20081206_3124123.htm?utm_
- Chinese Embassy in Jordan. “Foreign Ministry Spokesperson Qin Gang's Remarks on French President Sarkozy's Comments on Beijing Olympics.” March 23, 2008. https://jo.china-embassy.gov.cn/eng/fyrth/200803/t20080326_1970521.htm?utm_
- Denis‐Remis, Cedric, Jean‐Fabrice Lebraty, and Herve Philippe. “The 2008 Anti‐French Demonstrations in China: Learning from a Social Media Crisis.” Journal of Contingencies and Crisis Management 21, no. 1 (2013): 45–55.
- Drissel, David. “Digitizing Dharma: Computer-Mediated Mobilizations of Tibetan Buddhist Youth.” International Journal of Diversity in Organizations, Communities, and Nations 8, no. 5 (2008): 79.
- DW. “China Postpones Summit with EU over Dalai Lama.” November 26, 2008. https://www.dw.com/en/china-postpones-summit-with-eu-over-dalai-lama/a-3822626?utm_.
- Edney, K. (2008). The 2008 Beijing Olympic torch relay: Chinese and Western narratives. China aktuell, 111-125.
- European Parliament. 2008. “Wednesday 26 March: Overview of Situation in Tibet.” 2008b. https://www.europarl.europa.eu/meetdocs/2004_2009/documents/dv/droi_31032008_interncamptibet_/droi_31032008_interncamptibet_en.pdf?utm.
- European Parliament 2008b. “Verbatim Report of Proceedings.” July 10, 2008a. https://www.europarl.europa.eu/doceo/document/CRE-6-2008-07-10_EN.html?utm_.
- Fox, John, and François Godement. A Power Audit of EU-China Relations. London: European Council on Foreign Relations, 2009.
- France24. 2008a. “Chinese Travel Agents Boycott France.” May 30, 2008. https://www.france24.com/en/20080530-chinese-travel-agents-boycott-france-china-france-tourism?utm_ .
- France 24. 2008b. “Paris Honors Dalai Lama, Chinese Dissident.” April 22, 2008. https://www.france24.com/en/20080422-paris-honors-dalai-lama-chinese-dissident-france-china?utm.
- France 24. 2008c. “Protests Cut Short Paris Leg of Olympic Torch Relay.” April 7, 2008. https://www.france24.com/en/20080407-protests-cut-short-paris-leg-olympic-torch-relay-2008-olympics-france?utm.
- France 24. 2008d. “Sarkozy to meet Dalai Lama in Poland in December.” November 13, 2008. https://www.france24.com/en/20081113-sarkozy-meet-dalai-lama-poland-december-france.
- France 24. 2008e. “Sarkozy will not meet the Dalai Lama.” August 6, 2008. https://www.france24.com/en/20080806-sarkozy-will-not-meet-dalai-lama-france-tibet?utm.
- France 24. 2008f. “France Damage Control amid Chinese Protests.” April 21, 2009. https://www.france24.com/en/20080421-france-damage-control-amid-chinese-protests-france-china?utm_.
- Frederick, Bryan, and Howard J. Shatz. Countering Chinese Coercion. Santa Monica, CA: RAND Corporation, 2022.
- French Republic. “Interview by Nicolas Sarkozy, President of the Republic, with the Xinhua News Agency on Franco-Chinese Relations and the Beijing Olympic Games.” August 6, 2008. https://www.vie-publique.fr/discours/171787-entretien-de-m-nicolas-sarkozy-president-de-la-republique-avec-lagen?utm_.
- Fuchs, Andreas, and Nils-Hendrik Klann. “Paying a Visit: The Dalai Lama Effect on International Trade.” Journal of International Economics 91, no. 1 (2013): 164–77.
- Gao, Zhidong. “Chinese Grassroots Nationalism and Its Impact on Foreign Brands.” Journal of Macromarketing 32, no. 2 (2012): 181–92.
- Harrell, Peter, Elizabeth Rosenberg, and Edoardo Saravalle. China’s Use of Coercive Economic Measures. Washington, DC: Center for a New American Security, 2018.
- Hong, Chuan, Wen Mei Hu, James E. Prieger, and Dongming Zhu. “French Automobiles and the Chinese Boycotts of 2008: Politics Really Does Affect Commerce.” The BE Journal of Economic Analysis & Policy 11, no. 1 (2011).
- King, Wesley. “On-line Chinese Nationalism towards the European Union: Economic and Diplomatic Implications of the Olympic Torch Relay Protests.” In On-line Chinese Nationalism and China’s Bilateral Relations, 177–97. 2010.
- Ministry of Foreign Affairs of the People’s Republic of China. “He Yafei Lodges a Strong Protest to France over Sarkozy’s Meeting with the Dalai Lama.” August 10, 2008. https://www.fmprc.gov.cn/mfa_eng/gjhdq_665435/3265_665445/3291_664540/3293_664544/202406/t20240611_11420603.html?utm_
- Ministry of Foreign and European Affairs and the Chinese Ministry of Foreign Affairs. Joint Statement. April 1, 2009. https://graphics8.nytimes.com/packages/pdf/world/France-statement.pdf?utm_
- Nyiri, Pal. “From Starbucks to Carrefour: Consumer Boycotts, Nationalism and Taste in Contemporary China.” PORTAL: Journal of Multidisciplinary International Studies 6, no. 2 (2009): 1–25.
- Papageorgiou, Maria. “The Two Faces of Coercion: Comparing China and Russia’s Economic Coercive Practices and Approaches in Europe.” In Economic Warfare in the 21st Century, edited by G. Kennedy. Contributions to Security and Defence Studies. Cham: Springer, 2025. https://doi.org/10.1007/978-3-031-90590-2_8.
- Papageorgiou, Maria, and Daniel D. S. N. de Melo. “China as a Responsible Power amid the COVID-19 Crisis: Perceptions of Partners and Adversaries on Twitter.” Fudan Journal of the Humanities and Social Sciences 15, no. 2 (2022): 159–88.
- Reilly, James. China’s Economic Statecraft: Turning Wealth into Power. Sydney: Lowy Institute for International Policy, 2013.
- Reuters. “Corrected-Update 1: Airbus Denies Summit Row Bad for China Deals.” November 27, 2008a. https://www.reuters.com/article/airbus-china/corrected-update-1-airbus-denies-summit-row-bad-for-china-deals-idUSLR38041220081127/?utm.
- Reuters. “French Parliament Rejects Tibet Flag Proposal.” April 4, 2008b. https://www.reuters.com/article/world/french-parliament-rejects-tibet-flag-proposal-idUSMOL460224/?utm_.
- Shambaugh, David L. China Goes Global: The Partial Power. Oxford: Oxford University Press, 2013.
- The Guardian. Olympic torch relay cut short amid Paris protests. April 7, 2008. https://www.theguardian.com/world/2008/apr/07/france.olympicgames2008
- Timofeyeva, Olga. “Centralisation of Public Diplomacy Management in China: The Carrefour Incident.” Коммуникации. Медиа. Дизайн 2, no. 2 (2017): 7–25.
- WITS Data. World Bank. Trade Statistics by Country. https://wits.worldbank.org/countrystats.aspx?lang=en
- Xinhua. “China Strongly Criticizes French Officials' Remarks on Tibet, Dalai.” March 27, 2008. http://www.china.org.cn/china/Lhasa_Unrest/2008-03/27/content_13674685.htm?utm_
- Xu, Xin. “Modernizing China in the Olympic Spotlight: China’s National Identity and the 2008 Beijing Olympiad.” The Sociological Review 54, no. 2_suppl (2006): 90–107.
- Zhang, Baohui. “Rethinking China’s ‘Economic Coercion’: The Case of the UK Leaders’ Meeting with the Dalai Lama in 2012.” The British Journal of Politics and International Relations 25, no. 4 (2023): 723–39.
- Zhang, Zhimin. “A Narrative Future for Europe–China Economic Relations after the Financial Crisis.” Global Media and China 1, no. 1–2 (2016): 49–69.
