Economic statecraft—using trade, investment, and financial tools to influence geopolitical outcomes—has become one of the most prominent slot777 daftar features of modern foreign policy. States increasingly deploy tariffs, export controls, investment restrictions, and access to financial markets as instruments of power.
Economic leverage is most visible in major-power competition. The United States and China use tariffs, technology bans, and investment screening mechanisms to shape strategic industries such as semiconductors, telecommunications, and artificial intelligence. These policies not only serve national security interests but also reshape global supply chains.
Smaller states also utilize economic statecraft. Through preferential trade agreements, development loans, and targeted investments, they build influence in regions where diplomatic competition is intense. Gulf countries, for example, leverage sovereign wealth funds to expand global economic ties and political influence.
Economic tools, however, come with risks. They can disrupt markets, provoke retaliation, and harm domestic industries. When overused, they may weaken global economic cooperation and undermine institutions like the World Trade Organization. Effective economic statecraft requires careful calibration, balancing national security needs with stable international commerce.
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