China and World Markets: The Paradox of Vulnerability Decrypted in Professor Pascale Massot’s New Book

The global economy is undergoing key transformations, and China, as the world's second largest economy, is playing a central role in these changes. Pascale Massot, Associate Professor at the Faculty of Social Sciences' School of Political Studies, examines key aspects of this phenomenon in her new book, "China's Vulnerability Paradox: How the World's Largest Consumer Transformed Global Commodity Markets", published by Oxford University Press.

Pascale Massot is a professor at the Faculty of Social Sciences' School of Political Studies. Her research focuses on the global political economy of China’s rise and impact on the liberal international order, China’s impact on global extractive commodity markets—including debates around de-risking, Canada-China relations, Canadian public opinion on China and China narratives more broadly, as well as the advent of Indo-Pacific strategies around the world.

In addition to her position at the University of Ottawa, she is also an Non-Resident Honorary Fellow in Political Economy at the Asia Society Policy Institute's Center for China Analysis and a Senior Fellow of the Asia Pacific Foundation of Canada.

Her expertise is regularly sought by policymakers. In 2022, she was a member and advisor to the co-chairs of the Canadian Foreign Minister's Indo-Pacific Advisory Committee. She has also served as a senior advisor on China and Asia in the offices of several Canadian ministers, including the Ministers of Foreign Affairs and International Trade.

In her book, "China's Vulnerability Paradox", Professor Massot examines the impact of China's economic growth on global commodity markets. She highlights a paradox: despite its economic power, China often finds itself in a vulnerable position in these markets.

The book explores three key questions: Why are Chinese players often unable to shape global market institutions in their own interests, despite China's increasingly important place in global commodity markets? Why does China's impact vary from market to market, with some commodity markets undergoing fundamental changes while others resist its influence? Additionally, how can we explain the uneven liberalization dynamics in commodity markets following China's emergence? Drawing on in-depth case studies, Professor Massot highlights the complex interplay between international and domestic Chinese market dynamics. She demonstrates that China's ability to influence global markets depends on the balance of market power between Chinese and international players in each market.

Professor Massot’s book highlights the often-unexpected consequences of China’s ascendancy on world markets. The author shows that the fragmentation of China’s political economy and the diversity of players involved (state-owned enterprises, ministries, industry associations) can lead to unpredictable results.

The book also questions the notion of "open markets," often used to describe the hyperglobalized era of the global economy. Professor Massot points out that many global markets have and continue to operate with high levels of concentration and coordination between market stakeholders. The emergence of China, with its own power structures and interests, highlights the need to pay attention to asymmetric power relations in global markets.

"China's Vulnerability Paradox" is an essential book for understanding the complex dynamics shaping global commodity markets in the era of China's rise. Professor Pascale Massot's nuanced analysis, based on empirical data and interviews with key players, offers a fresh perspective on international economic relations.

The book was recently featured in an edition of Pekingnology, a respected Chinese politics newsletter, indicating the growing interest in the book's analysis. For readers interested in a related discussion of the notion of vulnerability by the author, an essay has also been published with the Asia Society Center for China Analysis.

To learn more about Professor Massot's work and explore other insightful research in political studies, visit the Research page of the School of Political Studies. For a broader range of social science research, check out the Faculty of Social Sciences Research website.