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Universidade Autónoma de Lisboa
e-ISSN: 1647-7251
VOL14 N2 TD1
Thematic dossier
Historical and Contemporary Perspectives on East Asia
January 2024
59
KICKING POWER PLAY: CHINA'S FOOTBALL DIPLOMACY
AS A GEOPOLITICAL FORCE
EMILIO HERNÁNDEZ-CORREA
emilio.hernandez@uva.es
PhD in Economics, and a Master's Degree in International Trade. He is a Graduate in East Asian
Studies, and a Graduate in Tourism. He is the Deputy Director of the Asian Studies
Centre, University of Valladolid (Spain) and a Lecturer at the Faculty of Commerce. He
has worked and researched in China for two years in the tourism and trade sectors. His
research also focuses on the Chinese sports industry, outbound Chinese tourism and its
economic impact, international trade with China and intercultural relations in companies
and organisations. Emilio has recently published his first book about Chinese global
governance.
RICARDO GÚDEL
ricardo.gudel@uva.es
Associate Lecturer of Business Management and International Trade at the University of
Valladolid (Spain). He is also a member of the International Trade Chair and the Asian Studies
Centre of the Faculty of Commerce. Ricardo is currently a PhD candidate, and his thesis focuses
on studying the geopolitical management of football in Asia. In recent years, he has developed
his professional activity in foreign trade and the sports field developing the grassroots football of
his home city. His research focuses mainly on overseas sports industries, competitiveness,
efficiency and the geopolitical impact of sports worldwide.
Abstract
This article examines China's strategic utilization of its burgeoning sports industry, specifically
football, as a means of global influence and the implications of this approach. The study draws
on an analysis of policy documents, academic literature, and empirical examples to explore
the evolution of China's sports diplomacy and the role of football in this context. The research
elucidates how China's leadership has orchestrated policies to transform the nation from
hosting sporting events to becoming a global powerhouse. The government’s initiatives
underscore this ambition, integrating the Belt and Road Initiative (BRI) with sports diplomacy
further amplifying China's soft power. The concept of guanxi, deeply rooted in Chinese society,
influences business relationships, also impacting sports diplomacy. The study showcases
China's European football club acquisitions as emblematic of a multifaceted strategy blending
cultural and economic influence. Shifts in foreign investment policies and state support have
influenced the trajectory of Chinese investments in foreign football clubs. This research
contributes to understanding how China leverages its sports industry for global influence and
the complex interplay of politics, economics, culture, and diplomacy. The analysis underscores
the adaptation of established concepts like guanxi in sports diplomacy. It elucidates China's
evolution from hosting sporting events to actively shaping global sports diplomacy. The study
further underscores the broader implications of China's approach, and the transformation of
football as a soft power tool. As China redefines its role in the global sports arena, this research
offers insights into its evolving strategies and the multifaceted implications for international
sports and diplomatic relations.
Keywords
China, guanxi, soft power, sport, strategy.
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e-ISSN: 1647-7251
VOL14 N2 TD1
Title Thematic dossier - Historical and Contemporary Perspectives on East Asia
January 2024, pp. 59-71
Kicking Power Play: China's Football Diplomacy as a Geopolitical Force
Emilio Hernández-Correa, Ricardo Gúdel
60
Resumo
Este artigo analisa a utilização estratégica que a China faz da sua crescente indústria
desportiva, especificamente do futebol, como meio de influência global e as implicações desta
abordagem. O estudo baseia-se numa análise de documentos políticos, literatura académica
e exemplos empíricos para explorar a evolução da diplomacia desportiva da China e o papel
do futebol neste contexto. A investigação elucida como a liderança da China orquestrou
políticas para transformar a nação de anfitriã de eventos desportivos numa potência global.
As iniciativas do governo sublinham esta ambição, integrando a Belt And Road Initiative (BRI),
ou Iniciativa Faixa e Rota, com a diplomacia desportiva, amplificando ainda mais o soft power
da China. O conceito de guanxi, profundamente enraizado na sociedade chinesa, influencia as
relações comerciais, tendo impacto também na diplomacia desportiva. O estudo retrata as
aquisições de clubes de futebol europeus por parte da China como emblemáticas de uma
estratégia multifacetada que combina influência cultural e económica. As mudanças nas
políticas de investimento estrangeiro e no apoio estatal influenciaram a trajetória dos
investimentos chineses em clubes de futebol estrangeiros. Esta investigação contribui para a
compreensão de como a China aproveita a sua indústria desportiva para obter influência
global e a complexa interação entre política, economia, cultura e diplomacia. A análise ressalta
a adaptação de conceitos consagrados como o guanxi na diplomacia desportiva. Ele esclarece
a evolução da China, desde a organização de eventos desportivos até a definição ativa da
diplomacia desportiva global. O estudo sublinha ainda as implicações mais amplas da
abordagem da China e a transformação do futebol como uma ferramenta de soft power.
À medida que a China redefine o seu papel na arena desportiva global, esta investigação
oferece perspetivas sobre a evolução das suas estratégias e as implicações multifacetadas
para o desporto internacional e as relações diplomáticas.
Palavras-chave
China, guanxi, soft power, desporto, estratégia.
How to cite this article
Hernández-Correa, Emilio & Gúdel, Ricardo (2024). Kicking Power Play: China's Football Diplomacy
as a Geopolitical Force. Janus.net, e-journal of international relations, Historical and Contemporary
Perspectives on East Asia, VOL 14, N2, TD1, pp. 60-73, consulted [online] on date of the last view.
https://doi.org/10.26619/1647-7251.DT24.4
Article received on September 03, 2023 and accepted on September 29, 2023
JANUS.NET, e-journal of International Relations
e-ISSN: 1647-7251
VOL14 N2 TD1
Title Thematic dossier - Historical and Contemporary Perspectives on East Asia
January 2024, pp. 59-71
Kicking Power Play: China's Football Diplomacy as a Geopolitical Force
Emilio Hernández-Correa, Ricardo Gúdel
61
KICKING POWER PLAY: CHINA'S FOOTBALL DIPLOMACY AS A
GEOPOLITICAL FORCE
EMILIO HERNÁNDEZ-CORREA
RICARDO GÚDEL
Introduction
China's growth in its influence in the global sports business is no secret. The fact that
Chinese investors acquire and invest in sports properties throughout Europe, in
international leagues and teams, or are part of the sponsorship of Formula 1, basketball
championships or tournaments on the world tennis circuit no longer surprises. China has
realized the possibilities the world of sports offers on the international stage. The world
looks at China, but China, too, looks at the world.
As the most popular viewed sport in the world, football is no stranger to this circumstance
and has proven to be a great pole of attraction. The development of the Chinese
professional football system, and its growing influence worldwide, is being driven by
different strategies and investment plans from the government. The list of clubs under
Chinese control has grown substantially in recent years. At the same time, the Chinese
Super League and its investments have led to significant signings from the most
established European and Latin American leagues. Likewise, Chinese companies and
investors with high purchasing power have been encouraged to invest in events,
equipment, facilities, agencies and sponsorships as an internationalization strategy
underscoring the soft power present in Chinese foreign policy.
Beijing has made football one of its top sporting priorities over the past decade. President
Xi Jinping makes no secret of his obsession with football. A year before becoming
president, he commented that he had three wishes: for China to qualify for the World
Cup, to organize the World Cup on Chinese territory, and to win the World Championship.
The dream of Chinese football is still present as a sport, but also as an instrument and
master key to internationalization, development, and progress.
In recent years, China's football industry has witnessed a boom, followed by a steep
decline. Initially, driven by governmental ambitions and private investments, Chinese
clubs aggressively secured top-tier international players and coaches. However, this
influx of capital did not align with foundational grassroots development, leading to an
unsustainable growth model. Many clubs soon grappled with financial issues, unable to
sustain the high salaries and other commitments, leading to defaults and, in some cases,
bankruptcy. This top-heavy approach, aiming to elevate China's global football status
rapidly, compromised long-term competitiveness and stability. Thus, the football bubble
in China has burst in the last years preceded by a global diplomacy strategy and the use
of football as a geopolitical tool. This paper delves into the soft power implications of
these developments in the Chinese football industry.
JANUS.NET, e-journal of International Relations
e-ISSN: 1647-7251
VOL14 N2 TD1
Title Thematic dossier - Historical and Contemporary Perspectives on East Asia
January 2024, pp. 59-71
Kicking Power Play: China's Football Diplomacy as a Geopolitical Force
Emilio Hernández-Correa, Ricardo Gúdel
62
Theoretical framework
Chinese football dream
Since the 1980s, one of China's goals has been to become the world's most significant
sports power. The strategies for this purpose have led it to compete with the United
States, Russia and the United Kingdom to become the country with the most gold medals
at the Olympic Games. This success is the result of government effort and planning.
After its return to the International Olympic Committee in 1979, China established an
"Olympic strategy", which was applied from 1980 (Hong & Zhouxiang, 2013). However,
at first, it was not a successful plan. After the poor results in the 1988 Seoul Games,
during the 1990s and 2000s, an elite sport system was implemented: Juguo Tizhi. This
time it did work, and China hosted the 2008 Olympic Games and won 51 gold medals
compared to 36 for the United States (Leite Júnior & Rodrigues, 2017). Thereafter, China
needed to replicate its success in Olympic sports with football. Thus, the then vice
president Xi Jinping declared in 2009, after the success of the Beijing Olympics, that the
results in football were low and that the country should promote football (Wang, 2009).
After the 2008 Beijing Olympics, then-Chinese President Hu Jintao issued directives
aimed at transitioning the nation from being a "country of major sporting events" to a
global sports powerhouse (Tan, 2015). Subsequently, President Xi Jinping intensified the
pursuit of this objective by his proclamation of the "Three World Cup dreams":
participating in the World Cup, hosting the World Cup, and winning the World Cup (Tan
& Bairner, 2018). In order to transform China into a future global football power, the
Chinese government unveiled the Medium- and Long-Term Football Development Plan
(2016-2050), and the National Football Field and Facilities Construction Plan (2016-2020)
in April 2016.
Moreover, on October 20, 2014, the State Council of China issued a national strategic
policy, titled "Opinions on Accelerating the Development of the Sports Industry and
Promoting Sports Consumption". At this juncture, the first declaration emerged in which
the highest echelon of the government acknowledged sport as a significant industrial
sector, and furthermore designated it as one of the new focal points for Chinese economic
growth (Laurell, et al., 2021). This strategy envisioned that by 2025, the Chinese sports
business would evolve into a market with an approximate value of $815 billion, yielding
an annual Gross Value Added (GVA) of around $250 billion, which roughly translates to
between 1.2% and 1.5% of the national GDP (Liu, Zhang y Desbordes, 2017).
On March 16, 2015, China accompanied this strategic policy with another strategic plan,
the "Comprehensive Reform Plan to Drive the Development of Football in China”. As a
follow-up strategy to implement the 2015 plan, on April 6, 2016, the National
Development and Reform Commission, China's principal planning body, introduced the
"Medium- and Long-Term Plan for Chinese Football Development (2016-2050)", a 35-
year football development plan outlining short-, medium-, and long-term objectives. Its
aim is to evolve into a dominant football power in Asia by 2030, and a global football
superpower by 2050. The objective was to establish a novel management approach for
this sport with distinctive indigenous features. The medium-term goal was to increase
the number of adolescent football players, and to attain leadership status in Asia in both
football competitiveness and in the organization of professional league matches.
Furthermore, China expected the women's football team to regain its status among the
world's foremost football powers (Leite Júnior & Rodrigues, 2017).
An essential strategy in the Chinese football industry is promoting grassroots football and
training national players to become professionals. With this aim, the goal of reaching 50
million practitioners in this sport by 2020 was set, with the expectation that most local
talents would emerge effortlessly. In 2011 specialized football schools began to open,
focusing on elite players' development. In addition, in 2021, the General Administration
of Sport of China encouraged constructing critical cities to develop national football. With
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e-ISSN: 1647-7251
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Title Thematic dossier - Historical and Contemporary Perspectives on East Asia
January 2024, pp. 59-71
Kicking Power Play: China's Football Diplomacy as a Geopolitical Force
Emilio Hernández-Correa, Ricardo Gúdel
63
this ambition, in the next few years, China would develop 16-18 football cities for the
expansion of football, and in the longer term, by 2035, football would be the driving force
for China to become a sports power (Li & Nauright, 2021).
This cascade of strategic policies and initiatives, while ambitious in terms of domestic
football development, is also indicative of China's broader intent to leverage football as
a diplomatic tool. Coined as "football diplomacy", this involves the integration of sports
into a nation's foreign policy to foster goodwill, improve bilateral relations, and elevate
its global status. China's aggressive roadmap to become a football superpower by 2050
can be seen in this light. It is not just about fostering national pride or enhancing
domestic sporting capabilities, but also about building a prominent soft power tool in its
diplomatic arsenal. The establishment of football schools and the vision of creating
football cities demonstrate a commitment to nurturing talent and projecting football as a
symbol of China's rising influence and ambition on the world stage. As these endeavours
progress, the symbiotic relationship between sport and diplomacy will underscore China's
strategy, wherein football becomes a medium to amplify its global outreach and
diplomatic clout.
Soft power strategy
The Beijing Olympics represented a pivotal moment in China's engagement with the
international arena, underscoring a fusion of local and global dynamics, and playing a
critical role in spurring the advancement of elite football in the nation (Giulianotti, 2015).
While Beijing's distinction of hosting both the Summer and Winter Olympic Games by
2022 is noteworthy, the mere organization of such mega-events might not suffice in
advancing China's sports industries for geopolitical aims. Considering the football
industry through the lens of Joseph Nye's soft power theory, the appeal to foreign
audiences becomes paramount.
The success of the soft power approach hinges upon the attractiveness of the final
product (Callahan, 2015). The Chinese Super League (CSL), operational since 2004 and
following the sport's professionalization in 1994, emerges as a central player. This league
has forged ties with diverse industrial sectors, predominantly real estate, and
construction. Such affiliations can be attributed to various dynamics, including initiatives
to entice entrepreneurs into football club investments (Chadwick, Widdop, and Parnell,
2016), thereby catalyzing the sport's appeal within the real estate business domain.
In this context, China adopted the approach of utilizing football as a geopolitical tool and,
within this strategic framework, devised a high-performance, international-oriented sport
with the potential to reaffirm national identity. Furthermore, China could harness football
to promote the country's image regarding international acceptance (Allison &
Monnington, 2002) and establish international relations through the so-called soft power
(Brentin & Tregoures, 2016). To this end, when establishing the CSL, the development
of new regulations for a transfer market and player mobility became crucial. This
facilitated player transfers and enabled their movements on a global scale with
competitive labour conditions, thereby supporting the internationalization of the industry.
Consequently, after various attempts with different systems, China developed a football
labour market partially akin to the European model, eventually transitioning to a free
transfer system in 2010 (Shuo, Tangyun and Fang, 2016), 16 years after the industry's
professionalization.
Researchers consider the surge of Chinese companies' investment in the European
football market over the last decade as a form of soft power (Connell, 2018). During this
period, Chinese investors bolstered their European influence through this means.
Investment trends experienced substantial fluctuations over the decade. Europe emerged
as the primary recipient of such investment, to the detriment of other global leagues
where Chinese clubs had invested, albeit to a much lesser extent, in prior years. In this
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e-ISSN: 1647-7251
VOL14 N2 TD1
Title Thematic dossier - Historical and Contemporary Perspectives on East Asia
January 2024, pp. 59-71
Kicking Power Play: China's Football Diplomacy as a Geopolitical Force
Emilio Hernández-Correa, Ricardo Gúdel
64
regard, international relationships with recipient clubs in the transfer market also varied.
The proportion of players acquired from the top four European leagues (England,
Germany, Italy, and Spain) increased from 6% in the 2011-2012 season to 65% in the
2017-2018 season. However, one aspect has remained relatively constant throughout
the decade. Chinese clubs' investment in CSL or lower divisions players comprises around
20-30% of the total investment, slightly decreasing in years of more excellent overall
investment. Thus, China has continued to emphasize the development of domestic talent
even while considering the use of the football industry in the geostrategic landscape.
Upon analyzing China's overseas investments on a broader scale, it is noteworthy that
the two most recent five-year plans, though differing in certain aspects, share standard
features. The Thirteenth Five-Year Plan (2016-2020) marks the first instance of a
reference to the Belt and Road Initiative (BRI). More significant overseas investment,
infrastructural activities along the BRI route, and demonstrating tangible outcomes
through foreign aid are highlighted as crucial points. This plan also acknowledges the
significance of sports as an emerging sector capable of fostering economic growth and
employment. It advocates for the development of the sports industry, including the
promotion of winter sports, the expansion of the fitness industry, and the hosting of
international sports events in China (United Nations Development Programme, 2016).
Meanwhile, the Fourteenth Five-Year Plan (2021-2025) outlines a long-term development
goal for 2035 of adhering to future openness policies, attracting ODI flows, and promoting
ODI through the Belt and Road Initiative (BRI), albeit with heightened sustainability.
Within the sporting realm, this plan refers to the continued reinforcement of the sports
industry, expansion of sports participation within the country, and incorporation of
measures to enhance public health and well-being, promote physical education in
schools, and stimulate sport-related economic development. The primary narrative of the
14th Plan is one of continuity, with some innovations and expanded ambitions (United
Nations Developemt Programme, 2021).
The most ambitious strategy pursued by the Chinese government, the Belt and Road
Initiative, encompasses sport among its principal objectives. This is so much the case
that in July 2017, the China National Tourism Administration of Sport of China launched
the "Action Plan for the Development of Sports Tourism along the Belt and Road (2017-
2020)”. This strategic plan aimed to propel the growth of sports tourism in China and
along the Belt & Road Initiative (BRI), while fostering increased cooperation with different
countries along the route through sports tourism (Leite Junior & Rodrigues, 2023).
Football was not exempt from this, and the integration of sports tourism, football, and
the BRI in China has been unfolding through various football exhibitions and tournaments
(Table 1).
Table 1 - Sample of events related to the use of football in the BRI strategy
Location
Year
Tournament
Countries involved
Shenyang
2017
One Belt One Road Football
Tournament
China, Nigeria, Equatorial
Guinea, Cameroon, Zambia,
Tanzania, Ethiopia, Somalia,
Zimbabwe and Ghana
Haikou
2017
The “Belt and Road” Haikou
Youth Football Tournament
China, Croatia, Malaysia,
Indonesia and Singapore
Mangshi
2017
“Colorful Yunnan, Belt and
Road” International
Football Open
China, Laos, Vietnam,
Thailand, Malaysia, Philippines,
Cambodia, East Timor and
Croatia
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Title Thematic dossier - Historical and Contemporary Perspectives on East Asia
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Kicking Power Play: China's Football Diplomacy as a Geopolitical Force
Emilio Hernández-Correa, Ricardo Gúdel
65
Guangxi,
Zhuang
2017
China-ASEAN International
Youth Football Tournament
China, Taiwan, Australia,
Russia, Vietnam, Indonesia
and the People’s Republic of
Korea
Shanghai
2018
Shanghai “Belt and Road”
Culture and Soccer Winter
Camp
China, Serbia, Sri Lanka,
Kenya and Panama
Hainan
2018
Hainan: “Belt and Road”
Cup
China, Azerbaijan, the Czech
Republic and Hungary
Source: Leite Junior & Rodrigues, 2023
Furthermore, mention of the well-known concept of Stadium Diplomacy concerning the
construction of infrastructure abroad is essential. China has built over 140 sports facilities
worldwide since 1958, significantly emphasising investment in the African continent
(Vondracek, 2019). In this manner, China secures access to specific raw materials while
also addressing the overcapacity in its construction sector (Jin et al., 2021). Within this
context, African countries become entangled in grand projects that, while providing a
sense of development, erect structures that do not necessarily enhance the quality of life
for local inhabitants (Dubinsky, 2021). Additionally, with Africa's evolving priorities
towards local industrialization, it remains to be seen how China will adapt its investment
strategies and whether such infrastructural projects will still be central to its engagement
with the continent.
This inflow of investment for the football and sports industry's development has been
regarded as a soft power strategy. However, akin to the BRI, it can also be considered
an intelligent power strategy with distinct Chinese characteristics—melding cultural
influence with economic clout. This modus operandi has transformed into a hallmark of
the country's identity and serves as the driving force behind China's foreign policy,
encompassing various investments and projects. Infrastructure, finance, culture,
education, interpersonal relations, political relations among states, and even the football
industry are not exempt from these investments. It combines elements of hard power,
such as economic investments, with a soft power strategy, encompassing the promotion
of Chinese culture or enhancing China's image. It is ideal for disseminating its soft power
strategy (Brînză, 2018).
An example of this was the acquisition of a 56% stake in the football team RCD Espanyol
of Barcelona in November 2015. This move corresponds to a series of interests associated
with the Maritime Silk Road in the Mediterranean Sea, as the port of Barcelona holds a
strategic location. Owning a local football club can serve as a political and economic tool
of persuasion, functioning as an effective instrument to attempt to exert influence or
establish connections. This operation was not the first instance of a Chinese company's
involvement in Spanish professional football. Presently, the Chinese conglomerate
Hutchinson manages the most critical container terminal at the port of Barcelona, and
China has become the top trading partner of the port of Barcelona, serving as a key entry
point for Chinese vehicles into the European market. Such geostrategic manoeuvres have
been recurring throughout the decade in the complete or partial acquisition of numerous
European clubs (see Table 2).
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e-ISSN: 1647-7251
VOL14 N2 TD1
Title Thematic dossier - Historical and Contemporary Perspectives on East Asia
January 2024, pp. 59-71
Kicking Power Play: China's Football Diplomacy as a Geopolitical Force
Emilio Hernández-Correa, Ricardo Gúdel
66
Table 2: Sample of Chinese investments in European football clubs from 2014 to 2021.
Club
Country
Company
Club Atlético de
Madrid
Spain
Dalian Wanda Group
ADO Den Haag
Netherlands
United Vansen
RCD Espanyol de
Barcelona
Spain
Rastar Group
City Football Group
England
China Media Capital Holdings
& CITIC Group
FC Sochaux-
Montbéliard
France
Ledus
Slavia Praga
Czech
Republic
CEFC China Energy Company
Northampton Town
England
5USport
West Bromwich
Albion
England
Yunyi Guokai Sports
Development Limited
Aston Villa
England
Recon Group
Wolverhampton
England
Fosun Group
OGC Nice
France
NewCity Capital
AJ Auxerre
France
ORG Packaging
Inter Milan
Italy
Suning
Granada
LaLiga
Wuhan Double/ Link
International Sports Limited
Birmingham Sports
Holdings
England
Trillion Trophy Asia
Olympique
Lyonnaise
France
IDG Captial
AC Milan
Italy
Sino-Europe Sports
Investment Management
Changxing Co., Ltd
Barnsley
England
PMC/NewCity Capital/ BFC
Investment Company Limited
Southampton FC
England
Lander Sports Development
Inter Milan
Italy
Lion Rock Capital
FC Thun
Switzerland
PMC/NewCity Capital
KV Oostende
Belgium
PMC/NewCity Capital
AS Nancy Lorraine
France
PMC/ NewCity Capital
FC Den Bosch
Netherlands
PMC/ NewCity Capital
Esbjerg Fb
Denmark
PMC/ NewCity Capital
Source: own research
However, the shift in China's foreign investment policy also manifested itself in the
withdrawal of investments, resulting in an outflow of Chinese capital from many of the
clubs that had been wholly or partially acquired. Among those listed in Table 2, notable
instances include the divestment and withdrawal of stakes in the City Football Group,
Aston Villa, Club Atlético de Madrid, Wolverhampton, OGC Nice, AC Milan, and
Southampton, among others, following the loss of state support.
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Title Thematic dossier - Historical and Contemporary Perspectives on East Asia
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Kicking Power Play: China's Football Diplomacy as a Geopolitical Force
Emilio Hernández-Correa, Ricardo Gúdel
67
Guanxi as a critical tool in Chinese international football diplomacy
The complexity of personal relationships finds a stable and deeply pervasive embodiment
in Chinese society known as guanxi, which transforms individual identity into a collective
one, whether within familial, educational, or work contexts. This interdependence also
facilitates the population's ready adoption of the narrative of collective effort and the
need to contribute towards shared objectives. Guanxi closely intertwines with Confucian
social norms. Guanxi comprises two interconnected aspects: a utilitarian dimension
based on mutual interests, beneficial purposes, and an affective or caring dimension,
where emotional closeness gauges the quality of guanxi (Hernández & García , 2023, pp.
36-37).
In a second sense, guanxi is an institutionally defined system developed within
contemporary Chinese society. The inefficiency and ineffectiveness of Chinese business
infrastructures and related institutions have reinforced the reliance on personal guanxi
for success and protection. In this scenario, frequent interactions and exchanges between
individuals from two companies or organizations lead to enhanced institutional
collaboration. This collaboration is nurtured by mutual trust, information exchange, and
acquiring resources and advantages to improve business performance. Its significance in
business has been extensively studied (Zhang & Hong, 2016, pp. 19-39). Pursuing
mutual benefit in relationships involving exchanges is a fundamental tenet of Chinese
thought, influencing the negotiation process based on concessions made by parties. This
also shapes the ultimate content of agreements, which must be balanced and fulfil
parties' expectations (Hernández & García, 2023, p. 38).
Guanxi has defined business and personal relationships in China for thousands of years.
Additionally (Luo, 2001), explains that the Chinese executive system is highly complex
and bureaucratic, with different levels such as central offices, provincial, municipal,
district, and street-level offices, as well as various departments and divisions, including
the General Administration of Sport, the Ministry of Commerce, and the Ministry of
Education. For this reason, a positive relationship with national and regional public
administration can assist companies in resolving conflicts, for instance, with suppliers
and buyers. It can also provide some support to these enterprises. Moreover, it is worth
recalling that before the significant investment bubble in Chinese football, the
government had advised companies and investors to invest in the CSL. Thus, researchers
understand football in China as a mean to forge relationships and participation rather
than a way to generate revenue within a broader business portfolio (Xue et al., 2020;
Chadwick, 2022).
Another significant reason explaining the interrelation of the football industry with other
sectors could stem from the success story of Evergrande, which transformed from a
provincial real estate contender into a national magnate (Sullivan, 2017). Both private
and state-owned enterprises observed the success of Evergrande in domestic and
continental football tournaments, prompting them to start investing in the football
industry. Sponsorship of the CSL was relatively inexpensive prior to 2015 due to the
instability of the Chinese football league during the previous decade. Therefore,
Evergrande acted like a "planet" attracting numerous "satellites" through the force of
gravity, such as powerful state entities like Luneng, Greenland, and SIPG, as well as
influential private entities like Suning and Jianye investing in football clubs (Tan &
Bairner, 2018).
Although this relationship may seem surprising, the truth is that it has been highly
significant in the recent history of this league. As Liu, Skinner, and Grosman (2020) point
out, club owners are the primary funding source for CSL clubs, primarily because they
have had few other investors. Until recently, the club's name served as advertising space
for its leading investor, deterring other potential sponsors. This relationship can also
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e-ISSN: 1647-7251
VOL14 N2 TD1
Title Thematic dossier - Historical and Contemporary Perspectives on East Asia
January 2024, pp. 59-71
Kicking Power Play: China's Football Diplomacy as a Geopolitical Force
Emilio Hernández-Correa, Ricardo Gúdel
68
shape the clubs' business models. Furthermore, this becomes evident when comparing
clubs managed by private enterprises and state-owned enterprises. Clubs owned by
private enterprises tend to exhibit more flexible and efficient management processes,
whereas those under state ownership display bureaucratic organizational practices.
Typically, privately-owned clubs possess more significant financial resources and exhibit
a quicker response capacity to poor results. However, a commonality among all the
companies owning CSL clubs is their greater focus on business objectives than football-
related ones.
In summary, the football industry in China has employed diverse investment and
internationalization strategies in addition to player expenditures. Over the past decade,
we can distinguish partial or total club acquisitions, sponsorships, and the hosting of
mega sporting events. In the last two decades, China has hosted significant international
events.
The 2008 Beijing Olympics marked a watershed moment in demonstrating the nation's
transformation and economic potential. Recent additions to this list include the 2022
Winter Olympics and the hosting of the Asian Football Confederation (AFC) Championship
in 2023. China not only hosts major international events but also uses national sports
infrastructures to host foreign league and club events. For instance, the French Cup finals
were played in China, first in Beijing in 2014 and subsequently in Shenzhen in 2018 and
2019. In this context, the French Professional Football League (LFP) and the French
Football Federation (FFF) jointly established an office in Beijing in 2017, intending to
expand the reach of French football in China. Through these events, China aims to shift
the focus of sports enthusiasts, particularly football enthusiasts, towards its league.
Discussion and conclusions
China's strategic employment of football, and more broadly, the sports industry as a tool
for global influence and soft power projection, is manifestly articulated through the
analysis. Framed within its mid-20th century economic openness and interdependence,
football, despite its initial languid growth, has burgeoned as a critical domain of interest,
especially post-1992, primarily propelled by domestic economic reforms (Tan, 2015; Tan
& Bairner, 2018).
The recent tumult in China's real estate sector, particularly epitomized by the Evergrande
scenario, poses queries about the longevity and robustness of China's financial
commitment to football and, more expansively, its soft power projection. Coupled with
Africa's pivot towards local industrialization, it holds the potential to recalibrate China's
global influence, encompassing its soft power dynamics. Financial and geopolitical
challenges cloud China's image as a reliable economic actor. This may impact on its
cultural and diplomatic sway in tandem (Liu, Skinner & Grosman, 2020; Sullivan, 2017).
In football, such external financial and geopolitical perturbations cast shadows on the
perception of China as a steadfast economic player, thus impacting its cultural and
diplomatic sway. Should China turn more introspective to stabilize its economy, its global
soft power projection, especially in sports, might wane.
Moreover, the role of guanxi, a quintessential relational concept in China, is pivotal in
understanding the dynamics at play. This interdependent relationship approach,
nourished by Confucian social norms, has been integral to China's sports diplomacy,
crafting meaningful relations and collaborations (Hernández & García, 2023). In this
regard, China's orientation towards foreign investment, as mirrored in the acquisitions of
European football clubs and its subsequent withdrawal in numerous instances,
underscores its diplomatic strategy's mutable and frequently volatile nature in sports.
This trend might be influenced by a medley of factors, spanning from shifts in domestic
policies to broader geopolitical challenges.
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However, what remains salient is that despite manifold investments and strategies,
economic sustainability and a long-term strategy for football remain subjects awaiting
comprehensive address. The integration of sports diplomacy within the Belt and Road
Initiative (BRI) epitomizes how China has aspired to meld economic and geopolitical
ambitions, although the veritable fruition of this endeavour remains a matter of
conjecture (Brînză, 2018).
Conclusions
This study underscores China's dynamic and multifaceted approach to utilizing its sports
industry, particularly football, as an instrument of global influence and soft power
projection. The Chinese leadership has strategically orchestrated the evolution from
hosting major events to becoming a prominent player in the international sports arena,
with policies to foster sports development and enhance international engagement.
The upheaval in China's real estate sector, epitomized by the Evergrande situation,
coupled with Africa's pivot towards local industrialization, holds the potential to
recalibrate China's global influence, encompassing its soft power dynamics. In the sphere
of football, such external financial and geopolitical perturbations might cast shadows on
the perception of China as a steadfast economic player, thus impacting its cultural and
diplomatic sway. Should China turn more introspective to stabilize its economy, its global
soft power projection, especially in the realm of sports, might wane.
Although there have been substantial investments in player transfers, partial or total
acquisitions of European clubs, or sponsorships, the use of the industry as a geopolitical
tool has impeded the sustainability of such expenditure and the establishment of a
strategy that could translate China's international success and recognition in the sporting
industry to football. In this regard, the integration of sports diplomacy within the Belt
and Road Initiative (BRI) showcases China's nuanced integration of economic and
geopolitical pursuits. However, the plans implemented in 2016 - the Chinese Football
Development Medium- and Long-Term Plan (2016-2050) and the National Football Field
and Facilities Construction Plan (2016-2020) - represent a shift in the industry's
development strategy, contextualizing the government's objectives within a medium -
and long-term framework to achieve the long-desired competitiveness. The lack of
economic sustainability following the investment period and the real estate crisis
impacted football. Thus, the country's sports objective has shifted in favour of a more
economically sustainable approach, with a significantly reduced investment profile and a
strong emphasis on grassroots sports. China exemplifies that the use of sports as a soft
power tool is less about economic profitability and more about a geopolitical strategy that
relies on guanxi to forge relationships on the international stage.
As China redefines its role on the international stage, its evolving sports diplomacy
strategy will likely continue to impact foreign investments, regional relationships, and
global perceptions. Understanding China's utilization of football and sports diplomacy
enhances our comprehension of its broader geopolitical aspirations and the innovative
ways it wields soft power. This research provides a lens through which to observe the
ever-evolving dynamics of China's engagement with the international community and its
multifaceted influence through the prism of sports diplomacy.
Limitations and future research
Firstly, this analysis examines sports diplomacy in China from a perspective exclusively
centred on football, potentially overlooking a broader landscape within the study's scope.
Moreover, the qualitative approach might provide a somewhat nuanced perspective on
the motivations, strategies, and challenges in China's efforts concerning sports
diplomacy.
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Title Thematic dossier - Historical and Contemporary Perspectives on East Asia
January 2024, pp. 59-71
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Future research could direct attention towards how China can strategically leverage
football once again as a geopolitical tool while ensuring the industry's sustainable
development to regain international competitiveness. Additionally, it would be insightful
to analyse the perspectives of local communities regarding the development of CSL
football clubs and the growth of grassroots sports within China to evaluate the broader
implications of these initiatives comprehensively.
The limitations highlighted in this study offer opportunities for forthcoming research to
delve further into the intricate aspects of China's sports diplomacy, thereby providing a
more comprehensive comprehension of the motivations, challenges, and impacts of its
strategies on the global sports arena and international relations.
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