Geostrategic Media Political Commentary, Analysis, Security, Defense
Tereza Felix
As tensions escalate between the West and China, it is increasingly clear that the economy must be recognized as a critical domain of warfare. The Chinese Communist Party (CCP) has pursued an aggressive economic strategy aimed at achieving dominance in the Indo-Pacific, employing coercive tactics that demand a robust response from the United States and its allies.
China’s Economic Warfare Tactics
In recent years, the CCP has engaged in a multifaceted campaign against the United States and Australia, leveraging predatory economic practices, the Belt and Road Initiative (BRI), and large-scale industrial espionage. This strategy is not merely about economic gain; it is a calculated effort to reshape the balance of power in the region without resorting to direct military conflict.
The CCP’s tactics often fall into what is termed “gray zone” activities—actions that blur the lines between peace and war. By exploiting the absence of a comprehensive Western strategy, China aims to undermine U.S. dominance in conventional warfare. The consequences are evident in the Indo-Pacific, where the U.S. struggles to maintain focus and where Australia’s efforts appear overstretched and uncoordinated.
Economic coercion is a primary tool in this arsenal. China’s control over critical mineral markets has allowed it to cripple competition, as demonstrated by its actions against Australian export industries in 2020. Furthermore, the militarization of the South China Sea and the construction of maritime facilities across the Indo-Pacific facilitate China’s strategic objectives, expanding its influence and securing vital infrastructure.
Redefining Economic Warfare
To effectively counter China’s economic warfare, the West must embrace the notion of the economy as a battlefield. The United States and Australia need to collaborate on an unconventional warfare (UW) strategy that leverages their strengths in private capital, development aid, sanctions, tariffs, and industrial policy—all while maintaining a narrative of a “free and open Indo-Pacific.”
Historically, the West has developed innovative UW techniques that can impose asymmetric costs on adversaries like the CCP. The U.S. Department of Defense defines UW as activities that enable resistance movements to disrupt or overthrow oppressive regimes. This framework can be adapted to impose economic costs on China, focusing on defined effects that can be both defensive and offensive.
Principles for an Economic Warfare Framework
Several key principles should guide the development of this economic UW framework:
- Define Clear Objectives: The United States and Australia must articulate their preferred outcomes, including economic competition and UW strategies that deter China from seeking dominance in the international order.
- Sustain Economic Costs: Rather than seeking to overthrow governments, the focus should be on imposing sustained costs on the CCP. Mobilizing private capital for commercially viable infrastructure projects can force China to recalibrate its investments and resources.
- Leverage Commercial Platforms: By utilizing commercial platforms, the U.S. and Australia can deny China access to key logistics hubs. This requires developing intelligence, surveillance, and reconnaissance (ISR) support that connects private sector players with timely intelligence.
- Counter Economic Occupation: The framework should address economic domination—manifested through practices like debt traps—rather than military control. Promoting investment strategies that alleviate local economic challenges can mitigate the CCP’s influence.
A Strategic Imperative
The United States and Australia must recalibrate their strategies to incorporate an economic UW approach that secures their interests in the Indo-Pacific. By adapting Cold War and Global War on Terror strategies to the current geopolitical landscape, they can impose costs on China while simultaneously benefiting states across the region.
In conclusion, recognizing economic warfare as a central component of modern conflict is essential for the West to effectively counteract China’s ambitions. Establishing a cohesive strategy that mobilizes private capital and innovative tactics will not only defend against Chinese economic aggression but also foster stability and prosperity in the Indo-Pacific.
