Chinese Outbound Tourism as an Instrument of Economic Statecraft

Abstract

China's growing economic strength provides Beijing with potent instruments of economic statecraft to pursue political and strategic objectives. Yet studies of economic power and Chinese economic statecraft tend to concentrate on trade in goods, outbound investment, and international institutions. This article broadens this research program into trade in services by focusing on China's outbound tourism sector. Drawing on a variety of Chinese and English language sources, the authors describe the history and structure of the domestic regulatory framework governing Chinese outbound tourism, before studying instances where the government has apparently intervened for strategic purposes. By unpacking how Chinese consumers arrange overseas holidays, this article provides insights into how the market structure of this service industry creates both opportunities for and constraints on China's economic power.