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as economic interdependence between China and its neighboring countries continue to deepen, which has brought some changes to their political interactions. Liberalism argues that economic interdependence is a power to promote peace, while realism sees it as the root cause of a conflict. This paper, having collected panel data for years 1981-2007 between China and its 17 neighboring countries, found in the research that variables such as relative comprehensive strength, and institutional participation level are under control, economic interdependence between countries indeed significantly enhances the political relations. With the increasing importance of economic factors, China and its neighboring countries have strengthened economic exchanges, deepening interdependence continuously, and forming a community of shared destiny. In this case, the two sides strive to avoid conflict, and prefer to cooperate as a means to seek more economic benefits. Besides, the results of the analysis and the effects of controlling variables on bilateral relations can also serve a certain reference to China’s diplomatic strategy.
as economic interdependence between China and its neighboring countries continue to deepen, which has brought some changes to their political interactions. Liberalism argues that economic interdependence is a power to promote peace, while realism sees it as the root cause of a conflict. This paper, having collected panel data for years 1981-2007 between China and its 17 countries, found in the research that the variables such as relative comprehensive strength, and institutional participation level are under control, economic interdependence between countries substantially significantly enhances the political relations. With the increasing importance of economic factors, China and its regular countries have strengthened economic exchanges, deepening interdependence continuously, and forming a community of shared destiny. In this case, the two sides strive to avoid conflict, and prefer to cooperate as a means to seek more economic benefits. Besides, the results of the analysis and the effects of controlling variables on bilateral relations can also serve a certain reference to China’s diplomatic strategy.