Foreign Policy For Sale?

Today, decisions taken in Beijing have a direct impact on foreign policy-makers from Tokyo and Manilla to Warsaw and Budapest. The emergence of the Belt and Road initiative shows that China has global ambitions that expand beyond its geographical periphery. Namely, the formation of the 17+1 summit, a forum for policy coordination and investment facilitation between China and Eastern and Central European countries, has triggered a debate whether China is carving out a piece of Europe. However, the extent of China’s involvement in Hungary and Poland has not been extensively analysed. Therefore, this thesis aims to establish a comprehensive overview of China’s hard and soft power in the two EU member states and interpret foreign policy making through the lenses of realism and liberalism. I based this qualitative research on a wide range of indicators, from economic relations to cultural influence, as well as gathered data on Chinese FDI and infrastructure projects. I also compiled data on all major Chinese projects and China-related foreign policy decisions. Contrary to the prevailing discourse, the research reveals contradictory results – the more Chinese investments a country receives, the less likely it is to take pro-China foreign policy positions. I conclude that although Chinese capital can reinforce already existent policy positions and domestic interests, China so far cannot combine its hard and soft power to achieve preferred outcomes, but it can entrench existing preferences.