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Diplomacy
China flag painted on a clenched fist. Strength, Power, Protest concept

The international reconfiguration's process towards multipolarity. The role of China as an emerging power

by Rachel Lorenzo Llanes

Abstract The international system is currently undergoing a process of reconfiguration that is having an impact on all areas of global development. In this process of reordering power relations, there is a tendency to move towards multipolarity, leaving behind the unipolar coalition established after the Second World War. In this context, several emerging powers are gaining increasing international power, which has led to changes in the hierarchy of power on the international geopolitical chessboard. Such is the case of the People's Republic of China, which has established itself not only as a power of great impact and relevance in the Asian region, but also in the entire international system. Namely, the management of the government and the Party in terms of innovation, industrialization, informatization, productivity, expansion and internationalization of its economic model, positions this country as the most dynamic center of the international economy. Evidencing that alternative models to the capitalist system are possible and viable, which strengthens the trend towards a systemic transition and multipolarity in the International System Introduction In the last two decades, a set of geopolitical and geoeconomic tensions and conflicts have become evident, with significant implications extending throughout the International System. As a result, we are currently experiencing a convulsion of the established order, giving way to a process of new global reconfigurations. In this context, several researchers and academics such as Jorge Casals, Leyde Rodríguez, Juan Sebastián Schulz, among others, have noted that these conditions have led to a crisis and hegemonic transition process, with a trend toward multipolarity in which the Asia-Pacific region is gaining increasing relevance. This article, titled "The International Reconfiguration’s Process Towards Multipolarity: The Role of China as an Emerging Power," is dedicated to analyzing the position of this country within the current international reconfiguration of power. Accordingly, the first section will systematize some essential guidelines to understand the current crisis and the decline of the hegemonic order established in the post-World War II period. The second section will address China's positioning amid the international reconfiguration of power. In this regard, it is important to note that China's rapid rise highlights how development management aligned with the Sustainable Development Goals can lead to a shift in the paradigm of international relations, as well as power reconfigurations that challenge the current balance of forces. Thus, it can be affirmed that China's rise constitutes a decisive element within the current trend toward multipolarity. DevelopmentNew International Order: Approaches to the Multipolar Reconfiguration of the International System The current international context is marked by a process of crisis. This crisis reflects the fact that the world order no longer aligns with the correlation of forces that gave rise to it during the post-World War II period. It is not a circumstantial crisis, but rather the interlinking of various interconnected crises that span across all sectors of life. That is to say, the effects of one crisis often become the causes of another, involving economic, political, social, cultural, ethical, moral, technological, commercial, and environmental components. In other words, it is a structural and systemic crisis—one that cannot be resolved unless a similarly systemic transformation occurs. To gain greater clarity, it is important to consider that the consolidation of the capitalist system brought about the process of globalization. This, in turn, introduced large-scale production and technological development capable of increasing output. This process, along with other characteristics of the system, has exponentially accelerated social inequalities between developed and developing countries. It has also led to strategic tensions over the control of resources, raw materials, and inputs, resulting in geopolitical conflicts. Furthermore, the capitalist system has imposed an extremely high environmental cost, demonstrating that it is exceeding both its own limits and those of the planet. Specifically, in its constant pursuit of profit and maximization of gains, negative environmental impacts are not factored into cost-benefit analyses, leading to widespread environmental degradation. Among other harms caused by the system, we observe a decline in investment rates, an increase in public debt, loss of autonomy in monetary policy, rising unemployment levels, reductions in real wages, and growing inequality, among others. In short, capitalism has become an unsustainable system whose primary concern is profit generation—something that is currently entirely incompatible with environmental preservation and the responsible use of natural resources. Therefore, it can be affirmed that some of its most alarming effects include: vast amounts of currency without backing, increasingly concentrated in fewer hands; acceleration of capital concentration in the West; rising military expenditures; and environmental pollution and destruction (Casals, J., 2023). On the other hand, it is necessary to clarify that, for a particular state to be considered hegemonic, it must not only exert its influence predominantly within the system of international relations; its hegemonic role must also be linked to the founding and establishment of a universally accepted concept of world order. That is, the majority of other states must recognize it as such and identify with the model promoted by the hegemon. Therefore, it is not merely a matter of a hierarchical order among states, but rather the adoption of a dominant model of production that involves those states. As a result, certain mechanisms or general rules of conduct are established for the participating states. For this reason, a hegemonic crisis involving the dominant actor in the system of international relations leads to a crisis in the social, economic, political, and institutional structures upon which that actor’s dominance was built. In light of these elements, we currently observe a set of powers within the International System that are vying to establish a new distribution of power—one that moves away from the unipolar coalition led by the United States following World War II. From this perspective, Juan Sebastián Schulz asserts: “A hegemonic crisis occurs when the existing hegemonic state lacks either the means or the will to continue steering the interstate system in a direction broadly perceived as favorable—not only for its own power, but also for the collective power of the dominant groups within the system.” (Schulz, J. S., 2022) As a result, strategic alliances have been formed and new power groups have emerged that influence international relations.These blocs are precisely what the new polarity is forming around, increasingly reinforcing the trend toward multipolarity. This is a system in which hegemonic influence is not determined by a single power, but by two, three, or more. In this regard, Juan Sebastián Schulz further notes that a process of insubordination is becoming evident, particularly in the Western peripheries. As a consequence, several countries have begun to criticize the configuration of the contemporary world order, initiating efforts to organize and propose alternative models (Schulz, J. S., 2022). This reveals the emergence of a new kind of power hierarchy, generating a global order in which a diversity of forces and actors prevails. In this context, China has experienced rapid growth, thereby contributing to the trend toward multipolarity. While this does not imply that the United States will cease to be one of the central powers in the system of international relations—given its considerable global influence—it is evident that there is a noticeable decline in the dominance it held during the unipolar era that emerged after the collapse of the USSR in 1991. This process of intersystemic transition unfolds in various phases. First, there is an observable economic transition marked by a shift in the center of gravity of the global economy toward emerging and developing economies. This shift is accompanied by a necessary technological transition, characterized by a new struggle—this time to lead the technological revolution. These changes, in turn, must be supported by a political transition. Currently, countries from the Global South have gained increasing prominence on the international stage [1]. From this foundation, a geopolitical transition is also underway, where the center of gravity and decision-making—once concentrated in the Anglo-Saxon West—is shifting toward the Asia-Pacific region. Finally, a cultural or civilizational transition is taking place, wherein the previously dominant value system is giving way to the rise of a new worldview. Based on this, the phases of the transition process can be outlined as follows: Existence of a stable order that brings together the majority of nation-states in the International System. - A crisis of legitimacy begins to affect the established global order. - A deconcentration and delegitimization of power emerges, impacting the hegemonic power. - An arms race and formation of alliances ensue in an attempt to preserve the hierarchical order by any means. This leads to a widespread crisis and the rise and emergence of new actors. - A necessary resolution of the international crisis. - Renewal of the system. (Schulz, J. S., 2022) In light of the above, it can be stated that a “new international order” is taking shape. Its manifestations are multifaceted, such as: - The rise of movements and associations of states that serve as alternatives to the neoliberal order. - Emerging powers like China and Russia are gaining strength in various sectors of the international geopolitical arena. - Russia's confrontation with NATO in the context of the conflict with Ukraine. - Sanctions imposed by the United States on various NATO and European Union countries have strengthened the BRICS nations. - The incorporation of new members into BRICS can be seen as an attempt to counterbalance the economic and political dominance of the United States and the European Union. - The expansion of anti-imperialist and anti-neoliberal integration mechanisms that promote South-South cooperation, such as the G-77 + China group. - The financial sanctions imposed by the West on Russia in the context of the Ukraine conflict have sparked a debate about the viability of the international monetary system and the role of the U.S. dollar as a reserve currency. - China and Russia conduct transactions in yuan and sell oil in this currency to Iran, Venezuela, and Gulf countries. China has increased its economic and political influence in the world, which can be seen as a challenge to U.S. hegemony. Its leadership within BRICS and its growing role in the global economy may be indicators of a shift in the balance of power. All these developments reflect a growing awareness within the International System of States regarding the importance of international cooperation to address global challenges such as the climate crisis, pandemics, and food security. They also serve as indicators that a transformation is underway in the way countries interact with each other, resulting in a shift in the economic, political, and strategic center of gravity. In this context, the United States has unleashed a global hybrid war as a desperate attempt to defend and maintain its hegemonic position, which once appeared unshakable in the postwar world. To this end, it has targeted China, as the latter represents its main threat in the economic and scientific-technological order. From this perspective, tensions between the United States and China have significantly deteriorated since the Republican administration of President Donald Trump. Beginning in 2017, his policy took on an aggressive stance toward China, manifesting through a trade war and economic attacks aimed at preserving U.S. global hegemony. This demonstrates that, in response to a process of decline already underway, nationalist and protectionist efforts intensified in the U.S., with policies targeting some of the emerging pillars of the crisis-ridden world order—China being a primary example. Under the administration of Joseph Biden, the focus shifted toward competition, emphasizing the commitment to protect U.S. sovereignty from potential Chinese threats. A significant shift in U.S. foreign policy toward Taiwan became evident with the approval of arms sales to Taiwan in August 2023, which escalated tensions in the region (Collective of Authors). Furthermore, in recent years, the United States has increasingly worked to generate geopolitical and geoeconomic motivations aimed at fostering tensions between China and Russia, potentially sparking conflict between the two. It has strengthened alliances with neighboring countries of these powers—most notably Taiwan and Ukraine—which has triggered concerns and tensions in both nations. A containment policy has also been deployed, including the imposition of trade barriers and tariffs on Chinese products; restricting Chinese companies’ access to U.S. technology and markets; and promoting the diversification of supply chains to reduce dependence on China. Nevertheless, the ongoing sanctions and restrictions have only served to reaffirm the shared survival interests of both powers, strengthening corporate ties and relations between them. These actions also reflect the growing concern among U.S. power groups over the decline of their hegemonic dominance. The Emergence of China and Its Role in the Transition Toward Multipolarity In a previous article titled "The Synergy Between Economy and Environment in China Through the Achievement of the Sustainable Development Goals," (‘La sinergia entre economía y medio ambiente en China mediante la consecución de los Objetivos de Desarrollo Sostenible’) the process of socioeconomic transformations experienced in the People's Republic of China over the past decade was discussed. These transformations have been primarily aimed at revitalizing the nation in preparation for its centenary in 2049. This strategy is rooted in aligning the Centenary Goals with the Sustainable Development Goals (SDGs) set for 2030, under the leadership of the Communist Party and the momentum driven by President Xi Jinping. The results of this strategy have had an impact not only on the Asian Giant itself—now a decisive actor in the Asian region—but also on the international order as a whole. As a result, China has emerged as a powerful rising power, with promising prospects for further elevating its development standards. This is backed by sustained GDP growth, averaging between 6% and 8% annually, indicating a robust economy. In addition, China holds vast foreign exchange reserves, granting it economic stability and the capacity to withstand potential external shocks. It also invests heavily in modern infrastructure and cutting-edge sectors such as artificial intelligence, 5G technology, and renewable energy—all of which enhance its competitiveness and lay the groundwork for long-term sustainable growth (Lagarde, CH). Nonetheless, China has also had to confront significant challenges in its gradual and progressive approach to the desired development model. Among these is the environmental cost associated with its rapid economic growth. For instance, China still experiences high levels of greenhouse gas (GHG) emissions, along with air, water, and soil pollution. In response, measures have been implemented such as the establishment of a national monitoring network and the replacement of coal heating systems in Beijing. Efforts have also been made to purify water resources polluted by industrial processes, and imports of solid waste have been reduced to help decontaminate soils affected by industrial and agricultural activities (González, R., 2023). In general, the development of renewable energy and a circular economy model is being promoted to enable a gradual transition toward a green economy, grounded in the concept of an ecological civilization. For this reason, China’s new era is committed to scientific and technological innovation as a means of driving economic growth that is both sustainable and capable of ensuring a higher quality of life for its population. This, in turn, leads gradually toward a new model of political leadership and economic management. In this regard, Jin Keyu, Professor of Economics at the London School of Economics and Political Science (LSE), has stated that “trillions of dollars of investment are needed for the global green transition, and China is going to play an essential role in that transformation” (Feingold, S., 2024). Based on the aforementioned elements, various authors such as Dr. C. Charles Pennaforte, Dr. C. Juan Sebastián Schulz, Dr. C. Eduardo Regalado Florido, among others, have indicated that the millenary nation represents a threat to the hegemony held by the United States since World War II. Consequently, it is recognized that a process of hegemonic crisis and transition is currently underway, with the Asia-Pacific region emerging as the center of gravity of the global power, thereby contributing to the multipolar transformation of the International System. The authors of “Is China Changing the World?” argue that “market socialism with “Chinese characteristics” must gradually and more clearly diverge from capitalism if it is to embody a genuinely alternative path for all of humanity.” In pursuit of this goal, China bases its policy of peaceful coexistence on five fundamental principles:Respect for sovereignty and territorial integrity, regardless of a country's size, power, or wealth. Mutual non-aggression Non-interference in the internal affairs of other countries, acknowledging that each nation has the right to freely choose its own social system and path of development. Equality and mutual benefit Peaceful coexistence. (Herrera, R.; Long, Z.; and Andréani, T., 2023) The rise of China as a major international power under these principles has been consolidating since 2012 under the leadership of Xi Jinping and the Communist Party of China (CPC), gaining particular momentum from 2020 to the present. Thus, China has not only become the leading power within the Asian regional balance but has also expanded its presence across Europe, Africa, and Latin America—primarily through loans, investments, and multilateral cooperation initiatives such as the Forum on China-Africa Cooperation (FOCAC) in Africa and the China-CELAC Forum in Latin America. In addition, China has positioned itself as a leader in several sectors, and it is projected that its economy may surpass that of the United States, increasing its Gross Domestic Product (Rodríguez, L., 2022). It has also undergone a process of opening up, energizing both its international trade and its overall foreign relations, all under the control of the Government and the Party. This, combined with its rise and development initiatives, has made China a focal point of interest for many countries within the International System seeking to jointly advance projects based on cooperation, the principle of shared advantage, and multilateralism. In this regard, the white paper "China and the World in the New Era," published by the Central Committee of the Communist Party of China in 2019, states: “The world is moving rapidly toward multipolarity, diverse models of modern development, and collaboration in global governance. It is now impossible for a single country or bloc of countries to dominate world affairs. Stability, peace, and development have become the common aspirations of the international community.” (People’s Republic of China, 2019. Quoted in Schulz, J. S., 2022) Undoubtedly, this rise has become a source of concern for U.S. power groups, which have increasingly applied geostrategic pressure. Notably, the United States has strengthened military alliances with India, Japan, and Australia in an effort to encircle China and attempt to control or obstruct its maritime routes—this also being a manifestation of the intensification of the imperialist arms race. Nonetheless, China has maintained its development strategy and, as part of it, has strengthened its diplomatic network and its relations with multiple countries across all world regions. For all these reasons, China has become the most dynamic center of the global economy. Notably, it went from representing 4% of global GDP in 1960 to 16% in 2020—undeniable evidence of rapid economic growth. Moreover, it has become the world’s largest exporter of goods and also the leading importer, establishing itself as a major industrial power. In this regard, United Nations data reveal that China leads global industrial production, accounting for 30% of the total. This figure surpasses other industrial powers such as the United States (16%), Japan (7%), Germany (5.7%), and South Korea (3.2%) (Schulz, J. S., 2022). In addition, China has remained the world’s leading manufacturing power for approximately 15 consecutive years, according to statements from the Ministry of Industry and Information Technology at the beginning of this year. This sector alone has contributed over 40% to overall growth. Likewise, in 2024, China experienced a significant increase in foreign investment, reflecting its interest in strengthening international cooperation for development. Efforts are also underway for urban renewal in 2024, with around 60,000 projects being implemented across various cities. These initiatives are primarily aimed at transforming underdeveloped neighborhoods and creating smarter urban areas (Embassy of the Republic of Cuba in the People's Republic of China, 2025). In this regard, the following graphs illustrate the value of China’s international trade during the 2016–2024 period, highlighting a strong presence of exports compared to imports. A second chart shows China's global export share, where it holds a dominant position.   Thus, China has risen as a center of power in the international system, with leadership not only in the economic domain but also in science and technology. At the same time, it has promoted a series of investments and a process of internationalizing its national currency. Accordingly, the Asian Giant offers an alternative model of development—one that is more comprehensive and sustainable—allowing it to propel the new phase of Chinese development. This phase aims not only to fulfill the dream of national rejuvenation but also to ensure the survival of its unique political, economic, and social model. Nevertheless, the significant challenges of sustaining growth cannot be overlooked. From this perspective, experts believe that new avenues of growth will be necessary for China to maintain the trajectory it has been experiencing. Specifically, the country must continue expanding its industrial sector while strengthening areas such as artificial intelligence, digital financial services, and green technologies (Feingold, S., 2024). It is also important to highlight the projected continuity and leadership of the Chinese government, with Xi Jinping identified as a key figure in the implementation of the Sustainable Development Goals (SDGs) in China, in conjunction with the socioeconomic transformation strategy toward the 2049 centenary. This has been pursued through the defense of multilateralism, economic openness, and international integration and cooperation in support of global development. Conclusions In light of the above, a decline in U.S. hegemony can be observed, even though this process is not linear—nor is it certain whether any single power or coalition has come to occupy a hegemonic position. What is clear, however, is the existence of a trend toward multipolarity, driven by emerging powers and the strategic ties they are establishing. This is giving rise to a non-hegemonic reconfiguration of power blocs, which are building a multilateral and multipolar institutional framework. It can also be affirmed that China has become the most dynamic center of the global economy. This has been supported by its growth strategy focused on industrialization, digitalization, innovation, productivity, expansion, and internationalization of its development model—while maintaining a strong emphasis on environmental sustainability. A range of key initiatives and development projects have been implemented to support the country's rise, consolidating its role in the multipolar reconfiguration of the International System. All of this has been essential in driving China’s new phase of development and contributing to the broader process of multipolar transformation. Undoubtedly, China’s rapid ascent represents a significant challenge to the International System, as it reflects a shift in international relations and a transformation in the distribution and hierarchy of global power. Notes [1] It is important to clarify that the so-called Global South should not be equated with the Third World, as the distinction between the First and Third Worlds is primarily based on economic and technological differences, which do not align with the current circumstances of the International System of States. In contrast, the term Global South emerges from a new geopolitical perspective that arose in the post–Cold War context, driven by the need to promote South-South cooperation. Moreover, it does not refer to a geographically defined region, as it includes nations from Latin America, the Caribbean, Africa, and the Asia-Pacific.Revista Política Internacional | Volumen VII Nro. 2 abril-junio de 2025. https://doi.org/10.5281/zenodo.15103898This is an open access article distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 International License (CC BY-NC 4.0). The opinions and contents of the published documents are solely the responsibility of their authors.ReferencesCasals, J. (2023). “El Nuevo orden global: amenazas y oportunidades”. Cuadernos de Nuestra América. Nueva época. No.5. RNPS: 2529.Colectivo de autores. “Crisis de hegemonía y ascenso de China. Seis tendencias para una transición”. Tricontinental. Instituto Tricontinental de Investigacion social. Buenoos Aires. Libro digital, PDF, Archivo Digital: descarga y online.Embajada de la República de Cuba en la República Popular China. (2025). Boletín informativo China-22 de enero de 2025. Oficina de Información y Análisis. Embajada de Cuba en República Popular China. Redacción y envío desde info3@embacuba.cn.Feingold, S. (2024). "¿Hacia dónde va la economía china?". World Economic Forum. Recuperado de: https://es.weforum.org/stories/2024/07/hacia-dondeva-la-economia-de-china/García-Herrero, A. (2024). "10 puntos y 18 gráficos sobre la política económica de Xi Jinping tras el tercer pleno". El Grand Continent. Recuperado de: https:// legrandcontinent.eu/es/2024/09/19/esta-china-estancada-10-puntos-y-18-graficos-sobre-la-politicaeconomica-de-xi-jinping-tras-el-tercer-pleno/González, R. (2023). " Medio ambiente en China: Impactos y respuestas del Partido y el Gobierno". CIPI. Recuperado de: www.cipi.cu/medio-ambiente- en-china-impactos-y-respuestas-del-partido-y-gobierno/Lagarde, CH. "Impulsar el crecimiento económico y adaptarse al cambio". Fondo Monetario Internacional. Discursos. Recuperado de: https://www.imf.org/ es/News/Articles/2016/09/27/AM16-SP09282016- Boosting-Growth-Adjusting-to-ChangePereira, CM (2022): “La reemergencia de China frente a la globalización neoliberal y el desafío de la conformación de un mundo multipolar”. Cuadernos de Nuestra America. Nueva Época. No. 05. RNPS: 2529.Schulz, J S. (2022). “Crisis sistémica del orden mundial, transición hegemónica y nuevos actores en el escenario global”. Cuadernos de Nuestra América. Nueva Época. No.03. RNPS: 2529. Bibliografía consultadaAmbrós, I. (2021). “ El Partido Comunista y los desafíos internos de China en el siglo XX”. Recuperado de: https://www.ieee.es/Galerias/fichero/cuadernos/ CE_212/Cap_1_El_Partido_C omunista_y_los_desafios_internos.pdfBanco Mundial (BM). (2023). Recuperado de: https:// datos.bancomundial.org/indicator/NY.GDP.PCAP. KD?locations=CNBBC News Mundo. (2021). "Cómo consiguió China erradicar la pobreza extrema (y las dudas que despierta ese triunfal anuncio del gobierno de Xi". 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Defense & Security
Letter tiles, Chinese Yuan bank notes and national flags on a word map. A Belt And Road Initiative concept.

Blocking the Belt and Road: Activation and deactivation of conflicts to contain China

by Alonso Ronald Ortiz García

Introduction Contemporary geopolitical competition has moved away from traditional paradigms of direct military conflict, giving way to more sophisticated forms of strategic rivalry. In this new landscape — where the lines between peace and war are increasingly blurred — the control of critical infrastructure and trade routes has emerged as a fundamental element of national power. The Belt and Road Initiative (BRI) — conceived by Beijing as the most ambitious geoeconomic project since the Marshall Plan — seeks to reshape the Eurasian trade architecture, positioning China as the central node of an integrated connectivity system. However, the events of 2025 reveal that this project does not operate in a strategic vacuum; rather, it faces a coordinated response from rival powers that have developed sophisticated strategies to limit, fragment, or condition its expansion. This article examines the indirect containment strategies directed against the BRI, focusing on one particular dimension: the deliberate activation and deactivation of conflicts as a tool of geoeconomic blockade. Through the analysis of two paradigmatic cases, it illustrates how rival powers can employ geoeconomic methods to block, fragment, or constrain large infrastructure projects by strategically manipulating regional conflicts. Two seemingly disconnected but strategically linked events will be examined — both of which have redefined the struggle for control over Eurasian trade routes. On one hand, the military escalation between India and Pakistan in the southern sector, specifically in the Rajasthan–Sindh–Southern Punjab Corridor; on the other, the peace agreement between Armenia and Azerbaijan, which revived the Zangezur Corridor Project, now under U.S. control. Both events represent concrete manifestations of a new form of great power rivalry centered on the instrumental use of conflicts to systematically obstruct the BRI. Geoeconomics as a Theater of War Geoeconomics, understood as an analytical discipline, examines how geographic, economic, and political factors intertwine to determine the relative power of states within the international system. Within this framework, connectivity infrastructures transcend their technical or commercial nature to become strategic assets capable of altering the regional balance of power. At its core, the BRI represents China’s attempt to create a network of economic dependencies that enables it to project political influence across Eurasia. This network includes both land and maritime corridors connecting East Asia with Europe, Africa, and the Middle East, establishing China as the central node of an integrated commercial system. However, the interconnected nature of this system also generates specific vulnerabilities: the disruption of critical segments can produce cascading effects that compromise the functionality of the entire network. Containment strategies, therefore, do not need to dismantle the BRI entirely to be effective. It is enough to introduce points of friction, uncertainty, or external control in key segments to alter participants’ cost-benefit calculations and reduce the overall attractiveness of the Chinese system. This logic of “selective blockade” allows rival powers to exert disproportionate influence with limited resources. In this context, the strategic activation and deactivation of conflicts emerge as a particularly refined tool. Unlike direct blockades — which require a permanent military presence and entail significant political costs — the manipulation of conflicts enables the introduction of instability indirectly, leveraging preexisting tensions to generate disruptions along critical BRI corridors. Thus, the temporal simultaneity of the India–Pakistan crisis and the resolution of the Caucasus conflict does not constitute a geopolitical coincidence but rather the manifestation of a deliberate geoeconomic containment strategy that employs the selective activation and deactivation of conflicts to block the fundamental pillars of the BRI. Case 1: Activation of the Indo-Pakistani Conflict The China–Pakistan Economic Corridor (CPEC) stands as the flagship project of the BRI in South Asia. With an estimated investment exceeding $60 billion, the CPEC aims to connect China’s Xinjiang region with the Port of Gwadar on the Arabian Sea, providing China with an alternative trade route that bypasses strategic straits controlled by rival maritime powers. The fundamental vulnerability of the CPEC lies in its dependence on Pakistan’s territorial stability—particularly in the southern provinces, where both critical infrastructure and the energy resources that sustain the project are concentrated. This is precisely where the strategy of conflict activation reaches its fullest expression. Following the escalation recorded in May 2025, intelligence analysts suggest that the timing and intensity of the Indo-Pakistani crisis indicate a deliberate activation of preexisting tensions with specific geoeconomic objectives. The impact of a hypothetical Indian incursion into the Rajasthan–Sindh–Southern Punjab belt would not necessarily aim for the permanent occupation of Pakistani territory, but rather for a demonstration of capability to disrupt the territorial continuity of the corridor. This interdiction strategy through conflict activation operates across multiple dimensions simultaneously. On the physical level, temporary control over this belt would effectively sever the connection between southern Pakistan and the routes leading to China, forcing costly detours or temporary suspensions of operations. On the economic level, the mere threat of disruption would significantly increase security and insurance costs for Chinese investments, thereby reducing the projected profitability of the corridor. More importantly, on the psychological level, a successful demonstration of interdiction capability through controlled escalation would create lasting uncertainty about the security of Chinese investments in the region. This uncertainty would not be limited to the CPEC, but would extend to other BRI projects that depend on the stability of strategic partners. The implicit message is clear: China cannot guarantee the security of its trade corridors against the strategic activation of conflicts by rival powers. The temporal dimension of this strategy is particularly sophisticated. The activation of conflicts makes it possible to generate immediate disruptions in the functioning of the corridors, while their eventual deactivation — once the strategic objectives have been achieved — avoids the long-term costs of a prolonged confrontation. This modulation of conflict intensity transforms regional tensions into precise instruments of geoeconomic policy. Access to the hydrocarbon reserves in southeastern Sindh adds an additional layer to this activation strategy. By temporarily controlling these resources during periods of escalation, India would not only obtain direct economic benefits but would also deny Pakistan and China the revenues that could otherwise be used to finance and expand the CPEC. This logic of “resource denial through conflict” is particularly effective in infrastructure projects that rely on sustained revenue flows to justify their initial investments. Case 2: Deactivation of the Armenian–Azerbaijani Conflict The second case illustrates the complementary side of this strategy: the use of conflict deactivation as a mechanism to gain control over critical infrastructure. The Zangezur Corridor, renamed the “Trump Corridor for Peace and International Prosperity” (TRIPP), represents a paradigmatic example of how a major power can insert control points into connectivity networks through the instrumental resolution of conflicts. In August 2025, U.S. mediation in the Armenian–Azerbaijani conflict allowed Washington to obtain exclusive development rights over this corridor for 99 years, effectively transforming what could have been a component of the BRI into an asset under Western control. This maneuver is particularly ingenious because it uses conflict resolution — seemingly a global public good — as a tool for broader geoeconomic objectives. The conflict deactivation strategy operates under a logic that is different but complementary to activation. While activation seeks to generate immediate disruptions in existing corridors, deactivation enables lasting control over critical segments of the connectivity network through the establishment of new contractual and regulatory frameworks that emerge from the peace process. The TRIPP occupies a crucial strategic position within the Eurasian connectivity network. As part of the Trans-Caspian Corridor (the so-called “Middle Corridor”), it provides a direct land route between Central Asia and Europe that bypasses both Russia and Iran. For China, this corridor represented a vital alternative to reduce its dependence on routes controlled by rival powers. However, by securing contractual control over the TRIPP segment through the instrumental deactivation of the conflict, the United States effectively introduced a strategic bottleneck in the middle of this network. The effectiveness of this strategy lies in its ability to condition the use of the corridor without explicitly prohibiting it. Washington can employ a variety of regulatory, tariff, and security instruments to make the transit of Chinese goods more expensive or cumbersome, rendering the route less attractive to traders and investors. This form of “administrative friction” can be as effective as a physical blockade, but with far lower political costs and reduced risks of escalation. Moreover, control over the TRIPP allows the United States to modulate its policy toward the BRI according to its broader strategic needs. During periods of bilateral tension, it can tighten restrictions on the corridor as a form of pressure; during periods of détente, it can ease such measures as a gesture of goodwill. This flexibility transforms the corridor into a permanent bargaining instrument in Sino–American relations. Integrated Logic: Activation and Deactivation of Conflicts as a Containment System The true sophistication of the analyzed cases becomes evident when one understands that the activation and deactivation of conflicts are not isolated tactics, but rather components of an integrated system of geoeconomic containment. The effectiveness of each element is amplified when they operate in coordination, creating a dynamic that maximizes pressure on the BRI while minimizing costs for the implementers. The activation of conflicts generates immediate disruptions and heightens the perception of risk associated with Chinese projects. Simultaneously, the selective deactivation of other conflicts allows rival powers to establish alternative control frameworks that channel trade flows toward systems under their own influence. This combination produces a “push-and-pull” effect: pushing trade away from routes controlled by China through the creation of instability, while pulling it toward alternatives managed by rival powers through the creation of selective stability. The temporal dimension of this integrated strategy is crucial to its effectiveness. Cycles of activation and deactivation can be calibrated to maximize the impact on long-term investment decisions, generating sufficient uncertainty to discourage future commitments — without creating levels of instability that would undermine the broader interests of the implementing powers. Systemic Dynamics The strategies of conflict activation and deactivation go beyond their immediate tactical objectives to generate broader systemic effects on the BRI and on global geopolitical competition. These effects operate across multiple levels and time scales, creating dynamics that can fundamentally alter the strategic calculations of all actors involved. First, these strategies introduce an element of structural uncertainty deeper than that produced by conventional forms of interference. While direct blockades or sanctions are predictable in their application, the manipulation of conflicts introduces elements of volatility that are far more difficult to anticipate and mitigate. International connectivity depends on the predictability and reliability of trade routes, but when those routes become subject to the unpredictable dynamics of strategically activated conflicts, investor and trader confidence in the system as a whole is eroded. Second, the alternation between activation and deactivation creates a pattern of cyclical instability that complicates long-term planning. Investors must consider not only the current state of stability in a region but also the likelihood that latent conflicts may be activated in the future for geoeconomic purposes. This additional consideration translates into demands for higher returns to compensate for perceived risk, thereby increasing the cost of capital for future BRI projects. Third, the strategy of activation and deactivation can generate demonstration effects that shape third countries’ perceptions of the BRI’s viability. When these countries observe that middle powers can effectively disrupt segments of China’s system by manipulating local conflicts, they may feel empowered to adopt more assertive positions in their own negotiations with Beijing. This dynamic can gradually erode China’s position as a preferred partner for infrastructure projects. Finally, these strategies create dangerous precedents for the stability of the international system. If the activation and deactivation of conflicts become normalized as tools of geoeconomic competition, other actors may adopt similar tactics, fostering a more volatile and unpredictable global environment. China’s Counterstrategies The strategies of conflict activation and deactivation do not operate in a strategic vacuum; rather, they generate adaptive responses from China that can alter their long-term effectiveness. Beijing has developed a variety of counterstrategies specifically designed to reduce the vulnerability of the BRI to this kind of indirect interference. One of the most important responses has been the development of mediation and conflict-prevention capabilities. Recognizing that many of the conflicts which can be strategically activated have roots in genuine, unresolved disputes, China has significantly expanded its involvement in international mediation. This approach seeks to address the underlying causes of instability that could otherwise be exploited by rival powers. At the same time, Beijing has intensified efforts to build early warning systems that enable it to anticipate the imminent activation of conflicts in regions critical to the BRI. These systems combine traditional intelligence with big data analysis and predictive modeling to identify patterns suggesting the external manipulation of local tensions. China has also pursued a more systematic geographic diversification of routes and corridors, developing multiple pathways to the same destinations to reduce dependence on any single segment of the network. This strategy of “planned redundancy” increases system costs but also enhances resilience against selective blockades caused by activated conflicts. A third line of response has been the development of specialized financial and insurance instruments for projects in high-risk regions. These tools allow China to maintain the economic viability of BRI projects even in unstable environments, thereby reducing the impact of conflict activation strategies. Future Projections The analysis of conflict activation and deactivation strategies directed against the BRI reveals the growing sophistication of contemporary geopolitical competition. The examined cases demonstrate that rival powers have developed effective methods to condition, fragment, or disrupt large-scale infrastructure projects without resorting to direct military confrontation, instead employing the strategic manipulation of conflicts as a tool of containment. These strategies represent an evolution of traditional forms of containment operating within the geoeconomic domain, using the interdependence of connectivity systems and their vulnerability to regional instability as vectors of strategic influence. Their effectiveness lies not necessarily in their ability to dismantle the BRI entirely, but in their capacity to introduce cyclical frictions and structural uncertainties that diminish the overall attractiveness of the Chinese system. However, the adaptive nature of geopolitical competition suggests that these activation and deactivation strategies will generate countermeasures and counter-countermeasures that continuously reshape the balance of advantages. China’s capacity to develop alternatives and redundancies, combined with its growing mediation and conflict-prevention capabilities, may eventually limit the effectiveness of these containment tactics. In the long term, competition surrounding the BRI will likely evolve into even more sophisticated forms of geoeconomic rivalry, where the ability to create, control, and protect connectivity networks — as well as to manipulate or resolve the conflicts that affect them — will become a fundamental measure of national power. This dynamic will have far-reaching implications not only for the main actors involved but also for the international system, which will need to adapt to an era in which the strategic activation and deactivation of conflicts has emerged as a central tool in great-power competition. The growing sophistication of these strategies suggests that the future of geopolitical competition will be marked by an increasing instrumentalization of regional conflicts for global geoeconomic objectives, creating new challenges for international stability and requiring the development of normative and institutional frameworks adapted to this new reality. References Chatham House. (2025). India-Pakistan ceasefire remains shaky; relations unlikely to return to status quo. https://www.chathamhouse.org/2025/05/india-pakistan-ceasefire-remains-shaky-relations-unlikely-return-status-quo Consejo Previsional Mundial (WPC). (2025). Informe sobre la brecha de infraestructura en Asia y el impacto de la BRI. La división de los BRICS y la guerra que estamos ignorando entre India y Pakistán. (2025, 8 de mayo). Navarra Confidencial. https://www.navarraconfidencial.com/espana/la-division-de-los-brics-y-la-guerra-que-estamos-ignorando-entre-india-y-pakistan/ La iniciativa de la Franja y la Ruta es un proyecto de cooperación internacional presentado por China en 2013, con enfoque en infraestructura, comercio y conectividad. (2025, 1 de septiembre). Lisanews. https://www.lisanews.org/internacional/iniciativa-franja-ruta-que-es-objetivos/ Le Grand Continent. (2025, 10 de agosto). Al firmar un acuerdo de paz entre Armenia y Azerbaiyán, EE.UU. desplaza a Rusia en el Cáucaso Meridional. https://legrandcontinent.eu/es/2025/08/10/al-firmar-un-acuerdo-de-paz-entre-armenia-y-azerbaiyan-ha-desplazado-trump-a-putin-del-caucaso-meridional/ Ministerio de Defensa de España. (2025). La visión estratégica de la República Popular China en la nueva era: Análisis del Libro Blanco sobre Seguridad Nacional. https://www.defensa.gob.es/ceseden/-/ieee/la_vision_estrategica_de_la_republica_popular_china_en_la_nueva_era_analisis_del_libro_blanco_sobre_seguridad_nacional_2025 Nedopil, C. (2025). Países de la Iniciativa del Cinturón y la Ruta (BRI). Green Finance & Development Center. https://greenfdc.org/countries-of-the-belt-and-road-initiative-bri/ Reuters. (2025, 7 de agosto). EE. UU. asegura un corredor de tránsito estratégico en el acuerdo de paz Armenia-Azerbaiyán. https://www.reuters.com/world/us-secures-strategic-transit-corridor-armenia-azerbaijan-peace-deal-2025-08-07/

Energy & Economics
Mersin, Turkey-09 12 2024: A cold Coca Cola or pepsi  bottle or metal can with water droplets on it. Coca Cola on black background

The geopolitical impact on global brands: Coca-Cola and Pepsi in the Middle East and Muslim markets

by World & New World Journal

Coca-Cola and Pepsi are among the most recognized and consumed soft drinks in the world, with Coca-Cola leading as the global favorite (World Population Review, 2025). However, in recent years, geopolitics has shaped their presence in certain regions, particularly in the Middle East and Muslim-majority countries. The reason behind this is interesting, these brands are often seen or associated with the United States (Hebblethwaite, 2012), a nation whose fame in these regions has always been questioned and been controversial, and whose policies in the region have long sparked controversy and criticism. Overview of Coca-Cola and Pepsi in the US Coca-Cola was born on May 8th, 1886, when Dr. John Pemberton delivered his newly perfected syrup to Jacob’s Pharmacy in downtown Atlanta, USA. After 139 years, what started as medicine evolved into the iconic soft drink that is enjoyed in more than 200 countries and territories every day (The Coca Cola Company, 2025). On the other hand, a few years later, in 1893, Brad’s drink, later rebranded as Pepsi-Cola, was invented in New Bern, North Carolina, USA by Caleb Brandham, as an aid in digestion (History of the Birthplace, 2018). Pepsi’s presence worldwide also covers more than 200 countries and territories and can be said it is Coca-Cola’s closest rival. While these brands have built a reputation, they have a long history, their competition has been fierce to the dominance of their market across the globe. The term “Cola Wars” represents this fierce competition. Cola wars gained global attention and likely reached their peak around the 1970s and 1980s in the US, while nowadays the fight keeps on, those years were key in how their presence around the globe has resulted nowadays. A bit of the context of the Cola Wars; during the beginning of the 20th century Coca-Cola led the market, while Pepsi had a rough time and went bankrupt in 1923. After its restructured, Pepsi maintained but Coca-Cola advertisements, such as those featuring Santa Claus, made it difficult for Pepsi to compete and by the time of WWII, Coca-Cola could be found in 44 countries already. In 1965 Pepsi merged with Frito-Lay-Inc trying to gain better footholds in restaurants and supermarkets. At the time Coca-Cola was expanding its brand into other soft drinks beverages, Pepsi could simply not compete against them. But by the mid-1970s, Pepsi launched its “Pepsi Challenge”, a genius blind test marketing bet in which over 50% of Americans chose Pepsi over Coca-Cola due its sweeter taste, of course Pepsi claimed its first victory over giant Coca-Cola and started its rise. Coca-Cola's response came with celebrity endorsement and the diet coke in the early 80’s. But by the mid 80’s, Pepsi sales skyrocketed due to its collaboration and promotion with Michael Jackson and appearance in several movies like Back to the Future. Coca-Cola had an identity crisis at the time, but after going back to its roots, (Weird History Food, 2022) once again it came back to fight and claimed its important place in the industry. Coca-Cola and Pepsi around the world While the Cola Wars were largely defined within the American market, their global expansion strategies took very different trajectories once they reached international audiences. Coca-Cola made their debut in the international market in the early 20th century, but it was until WWII when it got international recognition. A marketing associated with American optimism and modernity was followed by the company, and during the war, the company produced millions of bottles for US troops abroad, introducing the drink to soldiers and civilians across Europe, Africa and Asia. The strategy transformed Coca-Cola from a domestic beverage into a global cultural symbol. Pepsi, meanwhile, took a more opportunistic route. After financial struggles between the 1920s and 1930s, the brand re-emerged with a more aggressive global approach. Its internationalization came in 1949 with exports to Canada and later expanded to Mexico, Brazil and the Philippines, but it was until the Cold War, when its real global expansion began (FBIF Food & Beverage Innovation, 2014), when it merged with Frito-Lay and diversified its portfolio. By 2024, PepsiCo generated $92 billion net revenue (PepsiCo, 2025) while Coca-Cola grew 3% to stand at $47.1 billion net revenues (The Coca-Cola Company, 2025) that same year and their products and diversifications not only include the classical soft drinks, but also other beverages and foods. Yet despite their shared dominance in over 200 countries, both face different degrees of acceptance depending on local political, cultural and religious attitudes. The role of geopolitics: soft power, sanctions, wars, risks and opportunities As stated already, both brands are known globally, however, it is important to highlight that their presence in different regions of the world has been shaped by other actors more than just commercial advertisements, or even due to their advertisements and commercial strategies. Let me explain in more detail. In the case of Coca-Cola, during WWII and the Cold War, many people outside of the United States associated the product with American culture, Coca-Cola became a symbol of American soft power and globalization, clearly seen in war advertisements featuring soldiers enjoying cokes suggesting the commonly used “bring people and nations together” phrases. (Edelstein, 2013) On the other hand, with a more social-cultural strategy, Pepsi used the American pop-culture as their approach to gain attention worldwide. Michael Jackson, Madonna, Britney Spears, Beyoncé, among others (Kalgutkar, 2024) were iconic in the brand. In addition, Pepsi’s marketing leveraged music, youth, and rebellion, giving a softer and aspirational appeal. However, this cultural and ideological symbolism also made both companies vulnerable to political backlashes and somehow have defined their reputation and presence in some areas of the world. In the 1950’s, France coined the term “coca-colonization” denouncing American influence. During the Cold War, Coca-Cola became a capitalist symbol (in the eyes of outsiders), and it was banned in the Soviet Union, an opportunity Pepsi took advantage of there. Later, when the Berlin Wall fell, Coca-Cola became a representation of freedom. (Hebblethwaite, 2012) However, the most notable geopolitical response came when the Arab League boycotted the brand between 1968-1991 in the 13-nation organization, because it chose to operate in Israel while the Palestinian land was under occupation. Pepsi capitalized on this absence, solidifying its position in the Arab markets. In addition to the Arab League boycott, there are other cases where sanctions imposed by the US to different countries have led to a small or lack of sales of the products, such as Myanmar, North Korea, Cuba or the Soviet Union, back on time. Moreover, occasional protests and bans in countries like Iran, Venezuela or Thailand (Hebblethwaite, 2012) has also affected the brands at certain points of the history and of course have created an image and reputation in the society, with positive, neutral or negative perceptions. Moving towards present day, after the war in Gaza broke out in October 2023, pressure on the brands reappeared on the Middle East; Coca-Cola, who has a factory in the illegal settlement in East Jerusalem in the Atarot Industrial Zone, was accused of complicity and violations of the international law, in addition to being “related” with the Israeli army. These led to the BDS Movement to add it to a boycott list, which led to protests and has also been spread across other Muslim-majority countries. Of course, sales have dropped sharply in different countries in the region like Egypt and Bangladesh. (Boycat Times, 2025) Pepsi, on the other hand, even though it has a major presence in the Middle East market built over the space left by Coca-Cola during the 1968-1991 boycott, has also been affected by the War in Gaza and the boycotts in the region. PepsiCo reported stagnation in beverage growth across Egypt, Lebanon and Pakistan, compared with 8-15% growth a year earlier the war started. (Awasthi, 2024) The boycott of these American brands in the Middle East and some Muslim-majority markets has led to important losses in the share market and the sales itself. For instance, Coca-Cola sales reportedly fell by 23% in Bangladesh and dropped by over 10% in Egypt, overall, there is an estimation of 7% regional revenue loss in the MENA region. The losses of the American brands had become an opportunity to the local brands, like Pakistan’s Cola Next and Pakola (shared market increased from 2.5% up to 12% after the boycott (The Economic Times, 2024)), Qatar’s Kinza or Egypt’s V7, which have up to 40% in market share growth and up to 350% growth in exports, canalizing consumer preferences for local alternatives. (The Economic Times, 2024), (Awasthi, 2024), (CBC, 2024), even in the West Bank, the Palestinian Chat Cola has been positioned in the market, with sales of over 40% in 2023 compared to the previous year. (Associated Press, 2025) Coca-Cola and Pepsi boycotts are not the only ones, other companies like McDonald’s or Starbucks have also been affected in the region, due to similar or same reasons. Even more, in Canada, another great example is the “americano” [coffee] being renamed as “canadiano”, (Barista Magazine, 2025) as response to the economic and political tensions developed earlier this year between Canada and the USA. Despite the boycotts, Coca-Cola and PepsiCo have a base in the region, and they have seek opportunities to continue, through investments (Coca-Cola invested $22 million in upgrading technology in Pakistan) or new strategies (PepsiCo reintroduced Teem soda in Pakistan with a “Made in Pakistan” printed on the label) (Shahid, DiNapoli, & Saafan, 2024). Overall, both companies are trying to maintain, penetrate and expand their products in the market, they have been using and relying on bottling companies as a strong tool for those purposes, creating alliances with local companies as well as innovating and testing different new products in the region. Conclusion The current boycott of Coca-Cola and Pepsi across the Middle East and Muslim-majority countries is not only a reflection of political anger – it is a window into how geopolitics can directly reshape consumer economies. What once symbolizes Western globalization, and cultural appeal has now become a marker of political identity and economic nationalism. In a society driven by consumerism – where success is often measured by how much one owns – people tend to care less about genuine human values such as love, kindness, respect, empathy and consideration (MET, 2022). Ironically, today that statement seems reversed. For many consumers, boycotting Western brands has become not only a moral choice but also an act of solidarity and empowerment. Beyond economics, the boycott also reflects a psychological and cultural response. For many consumers in the Middle East, choosing what to drink has become a symbolic act of identity, resistance and empathy. Avoiding brands such as Coca-Cola and Pepsi offers a sense of agency and unity Palestine, turning everyday consumption into an expression of political consciousness. Although both companies remain resilient and continue to invest heavily in local markets, their challenges go beyond short-term losses. The rise of local brands such as V7. Kinza and Cola Next highlights a deeper regional shift – where consumers are not merely reacting to politics, but redefining loyalty based on ethics, identity and sovereignty. In the long term, this phenomenon could accelerate the regionalization of the markets, as local producers gain confidence and international corporations are compelled to adapt – by respecting cultural sensitivities, building genuine local partnerships, and ensuring transparency across their supply chains. Ultimately, the story of Coca-Cola and Pepsi in the Middle East demonstrates that in today’s interconnected world, soft power is no longer a one-way export. Consumer behavior itself has become a form of diplomacy – capable of rewarding inclusion or punishing complicity.ReferencesAssociated Press. (2025, 03 02). Coca-Cola's appeal to Palestinians fizzles amid war. Retrieved from VOA News: https://www.voanews.com/a/coca-cola-s-appeal-to-palestinians-fizzles-amid-war/7991182.htmlAwasthi, S. (2024, 09 15). Middle East conflict bites Coca-Cola, Pepsi. Retrieved from SBS News: https://www.sbs.com.au/news/podcast-episode/middle-east-conflict-bites-coca-cola-pepsi/z445sv6glBarista Magazine. 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