Jump to ContentJump to Main Navigation
Chinese Economic StatecraftCommercial Actors, Grand Strategy, and State Control$
Users without a subscription are not able to see the full content.

William J. Norris

Print publication date: 2016

Print ISBN-13: 9780801454493

Published to Cornell Scholarship Online: August 2016

DOI: 10.7591/cornell/9780801454493.001.0001

Show Summary Details
Page of

PRINTED FROM Cornell University Press SCHOLARSHIP ONLINE (www.cornell.universitypressscholarship.com). (c) Copyright University of Cornell University Press, 2020. All Rights Reserved. An individual user may print out a PDF of a single chapter of a monograph in Cornell for personal use. date: 29 May 2020

State Administration of Foreign Exchange

State Administration of Foreign Exchange

A SAFE Tool of Economic Statecraft

Chapter:
(p.167) 8 State Administration of Foreign Exchange
Source:
Chinese Economic Statecraft
Author(s):

William J. Norris

Publisher:
Cornell University Press
DOI:10.7591/cornell/9780801454493.003.0009

This chapter examines an instrument of Chinese economic statecraft: the State Administration of Foreign Exchange (SAFE), the financial entity in charge of managing China's foreign exchange reserves. More specifically, it considers one episode to show how the state was able to use SAFE to pursue its strategic foreign policy objectives: Costa Rica's 2007 derecognition of Taiwan. The chapter first provides an overview of SAFE before discussing SAFE's purchase of Costa Rican bonds in 2008 and 2009. It shows that SAFE's bond purchase was part of a larger pattern of economic inducements collectively designed to strengthen Costa Rica's ties to the mainland while severing its connection to Taiwan. The SAFE–Costa Rica episode illustrates how China's sovereign wealth funds can be used to achieve a foreign policy goal.

Keywords:   Chinese economic statecraft, State Administration of Foreign Exchange, China, foreign exchange, foreign policy, Costa Rica, derecognition, Taiwan, bonds, sovereign wealth funds

Cornell Scholarship Online requires a subscription or purchase to access the full text of books within the service. Public users can however freely search the site and view the abstracts and keywords for each book and chapter.

Please, subscribe or login to access full text content.

If you think you should have access to this title, please contact your librarian.

To troubleshoot, please check our FAQs, and if you can't find the answer there, please contact us.