GEOECONOMIC BALANCING, GEOECONOMIC BANDWAGONING OR GEOECONOMIC HEDGING? GERMAN-CHINESE RELATIONS 2008-2020.

Despite the rising geoeconomic competition between the USA and China, no suggestions are offered in the contemporary literature as to what geoeconomic strategy middle powers can use towards the great powers in the face of the currently emerging bipolar world structure. In this paper, three ideal-typical models of geoeconomic strategies for middle powers are developed with the help of terminology borrowed from strategic studies: the concepts of balancing, bandwagoning and hedging lead to the concepts of geoeconomic balancing, geoeconomic bandwagoning and geoeconomic hedging. Further, the behaviour of Germany towards China is tested, and it is argued that Germany has chosen geoeconomic hedging as its strategy towards China. By simultaneously promoting and restricting economic relations with China, Germany seeks to protect its commercial interests in China and at the same time strengthen its partnership with the USA and EU members to avoid falling into the Chinese sphere of influence. [ABSTRACT FROM AUTHOR]