The term ‘diplomacy’ originates from the ancient Greek word diplōma, meaning “an object folded in two,” referring to a document granting travel or special privileges to diplomats. Statecraft is defined as the art of governing state affairs, encompassing diplomacy, economic statecraft, military strategy, and intelligence. Economic statecraft is defined as “the use of economic means to pursue foreign policy goals,” including foreign aid, trade, sanctions, tariffs, and investment to achieve foreign policy goals. While diplomacy relies on negotiation and alliances to further foreign policy, economic statecraft, on the other hand, relies on economic power to achieve foreign policy objectives.

In early human history, relations between groups were often conflictual, with armed confrontation serving as the primary means for achieving strategic advantage. Yet, even in antiquity, diplomacy emerged as a vital tool for negotiation and conflict resolution. The rivalry between the United States and China, unlike ancient rivalries, did not evolve solely due to military power; rather, it is a hybrid of trade, investment, alliances, and military strength.

China has rooted its diplomacy in trade and economics, stretching its relationships from Asia to Africa and reviving the old Silk Road that was once a symbol of China’s economic dominance. By using economic diplomacy as its foreign policy tool, China can open new markets and build alliances. Elsewhere in the Western Hemisphere, China is becoming the most important trade partner, with the likes of Argentina, Brazil, and Colombia now shifting towards China despite being traditional allies of the United States.

The United States’ current diplomacy is evolving in the use of economic statecraft as well, through sanctions, tariffs, and foreign investment based on coercion and compliance. If that can be successful in achieving the U.S. foreign policy objective and the interest of the U.S. national security, it is apparent that the strategy is limited, as it does not have global reach. While states may comply with the U.S. policy based on fear of retaliation, success from this method can be limited; as in international relations, states can balance or bandwagon. By analyzing the global politics of small states in the south, the U.S. economic statecraft and boat diplomacy may push them towards balancing towards China.

Robert J. Art and Robert Jervis, in International Politics: Enduring Concepts and Contemporary Issues, argue that “force can be used to take or to bargain. If you can take what you want, you do not need your adversary’s cooperation and do not have to bargain with him. A country may use force to seize disputed territory just as a robber may kill you to get your wallet. Most of the things people and nations want, however, cannot be taken in this way. A nation may want others to stop menacing it; it may even want others to adopt its values. Brute force alone cannot achieve these goals.”

Coercion has been a tool of U.S. economic statecraft in foreign policy for a long time. However, history shows that it has clear limitations, especially in great power rivalry. In the U.S.-Japan rivalry leading to World War II, Japan achieved early military successes, but its overextension and limited industrial base prevented long-term strategic victory. Rather than deterring Japan, U.S. sanctions intensified its aggression, illustrating again that economic pressure can provoke escalation rather than prevent it. Coercive tools such as economic sanctions and tariffs, while a game-changer, cannot alone secure a strategic victory.

For deterrent purposes, economic sanctions historically have not prevented rogue states from changing their behavior. It did not prevent North Korea from developing long-range ballistic missiles, just as it was not successful in changing Iran’s human rights behavior and nuclear ambitions. Rather than punitive deterrence, what ultimately works in Iran is deterrence by denial, as initial punitive measures did not suffice highlighting the limitations of economic statecraft in power competition. Punitive deterrence will not prevent a new power from rising, as described by Alison in Thucydides’ Trap, nor will it prevent weaker states from balancing against strong ones. It did not prevent the rise of China, and it will not prevent the rise of other future powers. What has and will make deterrence effective is the innovation of the U.S. nuclear triad, extended deterrence, and international cooperation through diplomacy.

Contemporary politics reflects the same pattern. Russia’s military power has not secured a decisive victory in Ukraine, and economic sanctions, either targeted or sectoral, have not changed Russia’s posture. As noted by the Council on Foreign Relations, “The United States began its 2022 barrage of sanctions by freezing $5 billion of the Russian central bank’s U.S. assets, an unprecedented move to prevent Moscow from using its foreign reserves to prop up the Russian ruble.” While sanctions in other sectors, such defense and energy, have been seriously targeted, the war is still ongoing. In the same vein, the U.S.–China competition and tariffs imposed on Beijing have failed to change China’s behavior as described by Global Trade Magazine, “China’s annual trade surplus passed $1 trillion, a record high, with a GDP growth remained steady at around 5%.”

It is paramount that the United States develop a hybrid strategy, combining diplomacy and other tools of statecraft to keep its leadership on the global stage, as opposed to relying on power.

While coercion and deterrence are important in great power rivalries, the current global landscape does not favor such a posture. There is a need to consider economic diplomacy as the main tool of U.S. foreign policy and economic statecraft as a second, as a future war will not be determined by military strength but by the mixture of both economic and military might.

Hafiz Ibrahim is a Ph.D. student at Virginia Tech’s School of Public and International Affairs, specializing in political economy, global security, and African-U.S. affairs. His professional experience includes serving as a Defense Trade Analyst government contractor at the U.S. Department of State, as well as working previously at Deloitte Consulting as a Sanctions Analyst. Views expressed in this article are the author’s own. 

Diplomacy in Great Power Competition and the Limits of Economic Statecraft was originally published on Global Security Review.

Washington’s Return to Central Asia

 For the past two decades, Central Asia—comprising Uzbekistan, Kazakhstan, Tajikistan, Turkmenistan, and Kyrgyzstan—has largely remained on the margins of U.S. foreign policy. After the withdrawal from Afghanistan, Washington viewed the region not as a battlefield, but as a quiet buffer zone separating Russia, China, and Iran. That perception, however, is changing. The war in Ukraine, the growing convergence between Moscow and Beijing, and the reemergence of ‘bloc politics’ have convinced U.S. strategists that the stability of this region will shape not only Eurasia’s future, but also the architecture of the emerging world order.

This renewed engagement can be seen as a redefinition of the C5+1 initiative that began under the Biden administration but is now being pursued under Trump with a distinctly economic and commercial tone. The difference lies in emphasis: rather than promoting liberal values, Washington’s new approach prioritizes industrial cooperation, transit corridors, and competition over critical mineral resources.

Washington no longer relies on hard containment. Instead, it is adopting what American policy circles call ‘smart containment’: a strategy of weaving economic, technological, and logistical interdependence that constrains Russian and Chinese influence without a military presence. Central Asia can become a strategic lever for Washington by positioning itself against Russia through reducing export routes dependent on Moscow and reshaping energy transport networks. For China, Central Asia can compete in the extraction and processing of vital minerals, which are the backbone of batteries, clean energy, and advanced technologies.

 Uzbekistan and Kazakhstan: Washington’s two Strategic Anchors

The United States engages Central Asia through two key partners: Kazakhstan, the region’s largest economy and the world’s main uranium producer, has become increasingly attractive to the Trump administration, and Uzbekistan, with its central location and sizable population. Investments by major U.S. companies like GE, Wabtec, and Microsoft represent more than industrial partnerships. They are part of Washington’s broader efforts to build non-Chinese supply chains, integrating the region into networks that bypass Beijing’s Belt and Road Initiative (BRI).

However, unlike in the 1990s and early 2000s, the Central Asian republics are now seeking to act independently. Kazakhstan, for instance, blocked the deployment of Wagner Group forces near its borders in 2023 and declined to deepen its participation in the Eurasian Economic Union. Uzbekistan, for its part, has introduced new foreign investment reforms designed to limit its dependence on China. The region’s leaders have now learned that diversification, not dependence, is the true safeguard of sovereignty and survival in an increasingly competitive Eurasian landscape.

Trump’s recent summit with Central Asian leaders carried significant political weight.  Kazakhstan’s willingness to join the Abraham Accords marks the first formal linkage between the Middle East and the Eurasian security architectures. Further, Kazakhstan recently signed a $4.2 billion deal with U.S. Company Wabtec Corporation to supply 300 locomotives over the next decade. Central Asia holds vast reserves of strategic minerals such as lithium, copper, and uranium that the U.S. can capitalize on.

Washington at a Crossroads: Containment or Partnership

Central Asia’s renewed importance for the United States stems from its position at the intersection of three major global trends: competition for vital resources, the restructuring of supply chains, and the emergence of a multipolar world order. This realization has prompted Washington to return to the heart of Eurasia after two decades of relative disengagement. Still, Washington will have to decide on a long-term strategy for diplomacy in Central Asia.

Today, Washington faces a choice between two approaches in Central Asia. The first is a containment-oriented strategy, viewing Central Asia primarily as a tool to counter China and Russia. The second is a partnership-oriented approach, focusing on infrastructure, technology, and sustainable development, which could help transform Central Asia into a genuine partner in the emerging global order.

Kazakhstan’s multi-alignment strategy, Turkmenistan’s neutrality, and Uzbekistan’s pragmatic approach signal efforts to navigate between competing powers. If these dynamics are guided by a cooperative mindset, Central Asia could transform from a backyard of disparate states to a bridge between major powers. However, if the competition continues under a zero-sum logic, the history of Cold War competition risks repeating itself in a new guise.

By embracing a cooperative strategy that recognizes the region’s strategic autonomy and prioritizes economic diversification and technological cooperation, Washington could move beyond the traditional containment mindset. In doing so, it could play a constructive role in shaping a new Eurasian order grounded in soft power, connectivity, and multilateral cooperation.

Ziaulhaq Tanin is a university lecturer and researcher. Views expressed are the author’s own.

Why Central Asia Matters to the United States Again was originally published on Global Security Review.