Portuguese strategies towards China during the Covid19 Pandemic.

Abstract

Small states, despite their power deficits, are able to influence large states. This paper explores how Portugal appears to have selected strategies to modulate yet improve its relations with China during the Covid19 pandemic. According to the Theory of Asymmetrical Negotiations (TAN) advanced by Habeeb, small states adopt soft strategies when they have high levels of commitment, worse alternatives available to them, and a low degree of control. During the pandemic, an increase in deficits drove Portugal’s government to seek to expand exports, attract investment, and improve its competitiveness. The authors find that Portugal has exhibited different behaviour regarding commitment, seeking alternatives, and exerting control in issues related to investment, export, and competitiveness. Portugal has flexibly employed soft strategies towards China during the pandemic, while reacting to external intervention from the US and maintaining internal compliance within the EU. With these strategies, Portugal has successfully, and without conflict, defended its interests, maintained its EU status, and limited the intensity of competition between the US and China regarding Portugal.