Articles

During foreign policy disputes involving China and some of its most important commercial partners, why do local leaders punish or protect foreign commercial actors? The decision comes down to the political incentives facing each local leader. Understanding this variation is important because how local leaders treat foreign businesses can influence the overall effectiveness of the Chinese government’s economic coercion against foreign states. 

Power transitions affect a state’s ability to exercise economic statecraft. As a dominating and a rising power approach parity, they face structural incentives to decouple their economies. This decoupling affects business-state relations: high-value businesses within the dominant power tend to oppose their state’s economic statecraft because of its costs to them, whereas low-value businesses within the rising power tend to cooperate because they gain from it. 

Economic interdependence has long been considered important to international peace. Questions about harmful effects of the free flow of capital, however, are arising. China and Organization for Economic Co-operation and Development countries are increasingly involving their business firms in security and intelligence work, causing a security dilemma dynamic that increases economic competition.

This article examines the trilateral relations between Russia, China, and Iran through their engagement in various issues from domestic, regional, and international levels. It explores the practices and coordination between Russia, China, and Iran in the international order, the Iranian Nuclear Program, the Shanghai Cooperation Organisation, domestic regime security, and economic connectivity. The article concludes that although Russia, China, and Iran have had overlapping interests and approaches in terms of contesting the Western created and dominated international "liberal" order, strengthening domestic regime security, defending authoritarian governance, and supporting de-dollarization, all of which have brought the three sides closer, a Russia–China-Iran axis has not thus far materialized. Rather, due to the lack of regularized and institutionalized mechanisms, the tripartite relationship remains an illusory entente, which is essentially driven by the bilateral ties followed by modest trilateral coordination in ad-hoc situations.

Joseph Nye argues that prudence results from the fear of creating unintended consequences in unpredictable systems and can develop into a norm of nonuse or limited use of certain weapons or a norm of limiting targets. Something like this happened with nuclear weapons when the superpowers came close to the brink of nuclear war in 1962, during the Cuban missile crisis. The Limited Test Ban Treaty followed a year later.