The Two-level Games in China’s Foreign Trade Policies

“Seldom is a book published exactly when it is most needed. But that is exactly the case with Dr. Liu’s text, in which she offers a convincing model to explain China’s foreign policy decisions. The need for such a model has been heightened with the election of Donald Trump to the American presidency and his explosive return to the international stage. This can be seen in the increasingly tempestuous world of international trade. The focus of which has shifted significantly from a broad emphasis on globalization and free trade to a more fragmented system shaped by geopolitical tensions and economic competition. China’s resurgence is a perceived threat to the American-led “rules-based-order”. In response, the U.S. has increasingly adopted protectionist measures, such as tariffs, export controls, and restrictions on Chinese firms, while also seeking to reshore critical supply chains and strengthen alliances to counterbalance China's influence. This evolving dynamic reflects a broader shift toward economic nationalism, decoupling, and the weaponization of trade policy as tools of strategic rivalry between the two superpowers. But what was and will be China’s rejoinder? The answer is absolutely essential for companies, investors, strategists, and even the layperson wondering how to position their assets, which university to attend, and even what car, computer, or AI platform to use. This book provides us with the essential rubric to make sense of how decisions are made and how they will likely to be made. It is carefully researched, easy to read, and provides a thoughtful look at the interaction between domestic and international politics and its effect on policy choices.” Alexander Kocsis, Professor, School of Civil and Commercial Law, Beijing Institute of Technology “Whether viewed through the lens of economic policy or international political theory, domestic constraints exert a subtle yet far-reaching influence on a state's foreign policy, particularly in terms of its participation and division of labor within multilateral systems. Dr. Liu astutely captures this analytical perspective, which holds both practical and theoretical significance. Through a detailed and original ""Two-level"" analysis of China's foreign trade policy, she enables readers to gain a deeper, more nuanced understanding of China's strategies, policies, and behaviors following its WTO accession. The cases selected by Dr. Liu are particularly representative, reflecting China's efforts and breakthroughs in addressing the demand for high-quality economic development in recent years. In light of the profound transformations currently shaping the global economic order, Dr. Liu's latest work offers a timely and valuable new perspective, particularly regarding the evolving dynamics of major power trade relations.” Dr. Kai Jin, Senior Fellow, Center for American Studies of the Global Governance Institution (Beijing).