Pandanomics: the economic dimension of Panda Diplomacy in China's foreign policy

This thesis examines the economic dimension of Panda Diplomacy as a tool of soft power and public diplomacy within China’s foreign policy. Historically, Panda Diplomacy has been utilised to strengthen bilateral relations and to align with China’s foreign policy interests, firstly as a diplomatic gift and then as a strategic tool based on a loan model. Recently, some scholars have suggested that Panda Diplomacy has evolved into a strategic instrument linked with China’s economic and trade agreements, a phenomenon referred to as “Pandanomics”. Through a qualitative research approach, this study employed primary and secondary sources to examine the role of Panda Diplomacy in China’s foreign policy and its relationship with China’s economic interests. Secondary data includes theories of soft power and public diplomacy, academic literature, and news articles, while primary data consists of first-hand interviews with Chinese experts in international relations and a comparative case study analysis. The selected case studies, namely Canada, Scotland, and Thailand were chosen based on their economic relations with China and for the implications that hosting pandas has had on these countries, allowing for an in-depth analysis of potential correlations between Panda Diplomacy and China’s economic agreements and trade deals. This research found that Panda Diplomacy is an effective tool of public diplomacy and soft power, reinforcing China’s image and fostering the foreign public’s curiosity toward Chinese culture. The universal appeal of pandas attracts public interest, but their presence alone does not alter international perceptions of China or influence views on its reliability as a partner. Moreover, the findings show that despite the significant costs, hosting pandas is seen as an honour, an act of goodwill, and a symbol of China’s commitment to preserving the partnership. The most significant finding of this research is that there is no clear evidence of a direct connection between panda loans and China’s economic agreements and trade deals. The timing coincidence of these agreements, instead, reflects broader bilateral relations between China and the receiving country. China uses panda loans as a symbolic affirmation of its commitment to diplomatic relations, with pandas functioning as sort of relationship reinforcements rather than economic incentives. Ultimately, this thesis argues that Panda Diplomacy has evolved to align with China’s shifting geopolitical and economic priorities, continuing to serve China’s evolving foreign policy objectives. By analysing the intersection of soft power, public diplomacy, cultural symbolism, and economic strategy, this thesis contributes to a deeper understanding of how China utilises Panda Diplomacy as a strategic tool in its global engagement strategies.