China's Party-State Capitalism and International Backlash: From Interdependence to Insecurity

Summary

Economic competition between China and some countries of the Organization for Economic Co-operation and Development grows in part from a new type of security dilemma. In this spiral, states are increasingly involving their own business firms in intelligence and security work, as are their rivals. Each state responds to its rivals’ action by trying to reduce economic interdependence in the name of national security. This analysis challenges the common view that interdependence fosters peace.