Economic coercion has emerged as one of the most potent tools, blurring the line between legitimate trade disputes and deliberate political punishment. Economic coercion has become one of China’s preferred instruments of statecraft. China, meanwhile, faced higher import costs, disrupted supply chains and reputational damage as a reliable trading partner. The result is fragmentation: supply chains are being rerouted, friend-shoring is gathering momentum, and businesses are diversifying, even at higher cost. Economic coercion weaponises trade, targeting industries tied to key constituencies to influence political decision-making.