After a eight Chinese fishing boats were spotted in the lagoon of Scarborough Shoal, the Philippines sent a frigate to investigate the trespassing within the Philippines 200-nautical mile Exclusive Economic Zone. In response, China sent two civilian Maritime Surveillance vessels and an armed Fishery Law Enforcement Command ship to reinforce its sovereignty claim. China felt this action by the Philippines and attempted to use coercive economic incentives for the encroachment on China's sovereignty.
The Chinese government blocked hundreds of container vans of Philippine bananas from entering Chinese ports by claiming the fruit contained pests. This had a major affect on the economic system of the Philippines because it exports more than 30% of its bananas to China. Additionally, China began slowing inspections of papayas, mangoes, coconuts, and pineapples from the Philippines. Furthermore, Chinese travel agencies stopped sending tour groups to the Philippines, due to concerns for tourist safety. As a result of these coercive incentives, business leaders in the Philippines pressured the government to cease its confrontational approach in the Scarborough Shoal. Beijing and Manila eventually reached an agreement to pull out all vessels in the lagoon.
This is a great example of coercive incentives taken by a larger nation upon a smaller nation. China knew its imports of bananas from the Philippines were a large source of income for the country. By restricting that trade and advising Chinese travel agencies to avoid booking trips to the Philippines they effectively forced the Philippines' hand to honor China's expected sovereignty.
http://www.isn.ethz.ch/Digital-Library/Articles/Detail/?lng=en&id=150946
Martin Tobias
1 comment:
For some time now, it appears that trade embargoes are China's preferred method of getting its way, diplomatically, with other countries in its sphere of influence. The problem with bananas and tropical fruits are that, unlike rare earths, other major powers like the United States aren't scrambling to aid the Philippines out of concern for a shortage.
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