Economic diplomacy involves using political and economic leverage to further a country's economic interests abroad. It operates at the bilateral, regional, and multilateral levels. Key aspects include promoting trade, investment, and economically beneficial exchanges. It requires technical expertise, versatility, and strong business skills. Economic diplomacy serves domestic economic development and helps enhance a country's international influence, improve the overall diplomatic environment, and seize global economic opportunities. A case study examines how China strengthened its economic diplomacy over recent decades through institutional reforms, setting clear goals, and participating in international platforms.

1. ECONOMIC DIPLOMACY

2. Economic diplomacy defined
“The process through which countries tackle the outside
world, to maximize their national gain in all the fields of activity
including trade, investment and other forms of economically
beneficial exchanges, where they enjoy comparative
advantage.; it has bilateral, regional and multilateral
dimensions, each of which is important”.

3. Three elements of economic diplomacy
 The use of political influence and relationships to promote and
influence international trade and investments.
 The use of economic assets and relationships to
increase economic security.
 Ways to consolidate(strong) the right political climate and
international political economic environment to facilitate and
institute these objectives.

4. Economic diplomacy-Issues
Economic diplomacy requires application
of technical expertise:
 Versatility,
 Flexibility,
 Strong business skills

5. Scope
International and Domestic economic issues – this
includes the “rules for economic relations
between states” that has been pursued
since the World War II.

And owing to the increased globalization and the resultant
interdependence among state during the 1990s obliges “economic
diplomacy to go deep into domestic decision making” as well.

6. Players
 State actors such as Govt.agencies
 Non-state actors such as NGOs
 Businesses and investors

7. Economic Diplomacy on the focus
of Foreign Policy

8. Economic Diplomacy on the focus of
Foreign Policy
 Economic diplomacy is
traditionally defined as the
decision-making, policy-making
and advocating of the sending
state’s business interests.
 Economic diplomacy is the art of
serving economic security and
strategic interests of the country .
 The agenda of economic
diplomacy is comprehensive.

9. THE ORGANISATION OF ECONOMIC SYSTEMS OF
DIPLOMACY
 The united model represents a complex of development of bilateral trade
and economic relations under the Aegis of Ministry of Foreign Affairs.
 The,partially,united model. The Ministry of Foreign Affairs and the Ministry
of Economic,jointly organize their work on the development of trade and
economic relations
 where the trade and
economic mission is allocated to the separate division of diplomatic missi
on, and, as a result, is in a
double subordination to the Ministry of Foreign Affairs and to the Ministry
of Economics.

10. Three levels
Economic diplomacy is functional at three
levels:
Bilateral Regional Multilateral.


11. Difference among these diplomacy
Economic diplomacy’
‘‘The political means as
leverage in international
negotiations with the aim of
enhancing national
economic prosperity, and
the use of economic
leverage to increase the
political stability of the
nation’’ .
For example: the US-EU
trade agreement negotiations
commercial diplomacy’
The work of a network of
public and private actors
who manage commercial
relations and business
support using diplomatic
channels and processes,
satisfying both public and
private needs.
For example: Chinese
businesses in Africa

12. Significance of Economic
Diplomacy

13. Significance of Economic Diplomacy
Interests
Power
Environment
opportunities

14. Significance of Economic Diplomacy
Interests
First, in terms of strengthening interests,
economic diplomacy is an extension of domestic
politics, and serves domestic economic
construction.
Economic diplomacy is interest-oriented.
 Economic diplomacy serves national economic
development and transformation.

15. Significance of Economic Diplomacy
Power
Second, by smartly employing power,
economic diplomacy helps to enhance China’s
international influence.
China is now fully able to counteract this and
enhance its international influence by exerting
its influence on global diplomacy through the
comprehensive and integrated use of economic
means.
Example
China-Africa Cooperation Forum in October
2000,

16. Significance of Economic Diplomacy
Environment
Changing the diplomatic
environment.
Third, by improving the overall
diplomatic environment, economic
diplomacy contributes to peace,
development, cooperation and a win-win
situation.
 Example
China-US relations are a typical
example of this.

17. Significance of Economic Diplomacy
Opportunities
Fourth, by seizing opportunities, economic
diplomacy is conducive to extending the period of
strategic opportunity.
Example
Since 2008, the global financial crisis and the
subsequent European and US sovereign debt crises
made the trend evident that the West is declining and
the East is the ascendancy.

18. Case study of Economic
diplomacy

19. Economic Diplomacy: A Case Study
 As a concept, economic diplomacy was
introduced by Japanese
 US advocated economic diplomacy late but
applied a carrot and stick policy
 Chinese however started paying attention
in the early 1990’s

20. China economic diplomacy: Early Days
• Internal revolution
• Restructuring of society under
Mao’s leadership
• Little contact with the rest of
the world, travel restrictions

21. Rise of economy in China
 Between 2000 and 2009, China experienced
strong economic growth, averaging 10% a year
 Jiang Zemin changed the style of diplomacy to a
"harmonious world"
 Americans are increasingly disturbed by the
growing economic clout of China

22. China and the US
Both share common interest in:
– strong and open global economy,
– inclusive growth and sustainable development
– stable international financial system
US welcomes China playing active role in:
– taking on due responsibility for the international financial
architecture
– in bilateral cooperation to address global economic
challenges

23. strengthen economic
diplomacy

24. How to strengthen economic diplomacy?
First, in terms of institutional framework
Second, in terms of setting goals
Third, in terms of institutional platforms
Fourth, we should further strengthen the
economic functions of institutions stationed
overseas.

25.  Fifth, in terms of team building
 Sixth, we should further promote diversified
participation.
 Seventh, in terms of theoretical study, we
should further speed up disciplinary
construction

26. conclusion
 Economic diplomacy was present from its origin in fore
ign policy. It is the predominant mechanism of fruitful a
chievement of the trade and economic relations based
on the bilateral and multilateral levels.

27.  It is an instrument for development of effective
cooperation between the countries and regions at
the global level.
 The role of economical diplomacy is irreplaceable in th
is process. Our life is full of infinite opportunities.

28. Reference
 https://books.google.com.pk/books?
id=gK_OQZDgskAC&printsec=frontcover&source=gbs_ge_summary_
r&cad=0#v=onepage&q&f=false
 https://books.google.com.pk/books?
id=zHl1LUZUcu0C&printsec=frontcover&dq=economic+diplomacy+an
d+politics+book&hl=en&sa=X&redir_esc=y#v=onepage&q&f=false
 https://books.google.com.pk/books?
id=nz8qSLutxUoC&printsec=frontcover&dq=economic+diplomacy+an
d+politics+book&hl=en&sa=X&redir_esc=y#v=onepage&q=economic
%20diplomacy%20and%20politics%20book&f=false
 http://www.dec.lv/mi/Baranay_Pavol_engl.pdf