Why the World Is Knocking on Beijing’s Door

Picture Credit: Alliance Bernstein

Western leaders are increasingly turning to Beijing as competition between the United States and China intensifies over global influence. From the UK and Canada to Germany and Finland, senior figures are making high-profile visits to meet President Xi Jinping, drawn by China’s economic power even as geopolitical tensions with Washington remain high.

At the heart of this renewed engagement is China’s dominance in future facing industries. The country leads global production of electric vehicles, renewable energy technology, batteries, robotics and rare earth minerals, resources essential to everything from smartphones to clean energy infrastructure. For many governments, maintaining access to Chinese supply chains has become a strategic necessity rather than a choice.

However, doing business with Beijing comes with risks. China has shown it is willing to use trade as leverage when countries cross its political red lines, as seen in past disputes with Canada, Australia, Japan and South Korea. To manage this, visiting leaders increasingly speak of setting “guardrails”, defined limits within which cooperation can continue without provoking retaliation.

The diplomatic balancing act is further complicated by pressure from the United States. While China does not explicitly demand loyalty from its partners, Washington has signaled discomfort with allies deepening ties with Beijing, particularly under President Donald Trump. This has left some countries navigating a delicate path between economic opportunity and political alignment.

Human rights remain the most sensitive fault line. Allegations involving forced labour, political repression and the treatment of dissidents continue to strain relations. Yet Beijing has grown more confident in deflecting criticism, aware that many countries still depend on its economic strength.