Economic levers of power as an instrument of achieving geopolitical goals: the growing importance of geoeconomics for the European Union, US, Russia and China

Zvezdanović Lobanova Jelena (Institut društvenih nauka), jzvezdanovic@idn.org.rs
Nikolić Goran (Institut za evropske studije), goranvnikolic@gmail.com
Ćurčić Petar (Institut za evropske studije), petar.pero.curcic@gmail.com

The leading economic powers increasingly use economic interdependence as a strategic tool in power politics. The main economic levers of power as an instrument for achieving geopolitical goals in modern conditions are economic sanctions and trade and technological restrictions imposed on competing countries. The US, China, and the European Union practice “more or less” these economic levers to position themselves more optimally in global geoeconomic relations. Their geoeconomic tactics are supported by extensive research by which these powers make predictions and align their economic interests with the economic interests of other countries. The latest estimates in this sense say that the growth of the economic power of the global economic powers will most likely lead to an accelerated separation of the global economy into two main blocs: American and Chinese. That would lead to a certain crisis that would affect the economic well-being not only of these countries but also the majority of the world. In order to stop this trend, that is, to avoid possible negative effects, coordinated efforts of the three largest economies are necessary: the US, the European Union, and China. That would specifically mean the conventional regulation of the world economy, like the conventional regulation of other significant social issues such as international armed conflicts. In addition, it would mean further promotion of the globalisation process, along with the liberalisation of global trade and foreign investments. This has the potential to curb somewhat the growing trend of geoeconomic coercion. Therefore, economic competition would remain the preferred method for managing the divergent interests of the leading economic powers.

Keywords: Geo-economics, power, sanctions, USA, European Union, China