Theorising the Hedging Strategy: National Interests, Objectives, and Mixed Foreign Policy Instruments

Hedging is a comprehensive foreign policy strategy that mixes competitive and cooperative approaches and is used to manage competing national interests during conditions of uncertainty over the future distribution of power. However, the literature is characterised by a lack of consensus on the central features of hedging, which leads to contradictions in how the concept of hedging is applied. First, this paper assesses the definition of hedging, identifies three rival approaches, and links the risks and opportunities of hedging with uncertainty over the future international distribution of power. Second, it discusses how the various interpretations of hedging have inspired different analytical models. Finally, it explains hedging as a theoretically intermediate and analytically mixed strategy. These claims are supported by studying the Asia-Pacific region, where hedging has become the dominant strategy for coping with the uncertainty surrounding the future distribution of power stemming from the rise of China.