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11. South Korea’s Strategic Approach to China (or Lack of It)

Author:
Chung Jae Ho
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Pertinent literature abounds on how East Asian states have struggled to position themselves vis-à-vis a rising China over the past two decades. Due to its geographical proximity and cultural similarities with China, as well as its strategic importance to both the United States and China, South Korea’s tightrope-walking has been more pronounced than anyone else’s.1 Given the crucial strategic issues regarding U.S.-China relations and the North Korean conundrum, how the Seoul-Beijing relationship is to evolve undoubtedly constitutes a key variable in regional security dynamics. This chapter asks what is Seoul’s recipe for dealing with a China that is becoming more “assertive,” examining its changing strategic and diplomatic stance over the years of the Park Geun-hye administration and the first year of the Moon Jae-in government. Of the six sections, the first offers a brief overview of the complex relationship since diplomatic normalization in 1992. The second outlines key features of an era of overoptimism during the first three years of the Park administration (2013-15). The third delves into the issue of THAAD (terminal high-altitude area defense) deployment and how that utterly shattered the Park-Xi honeymoon in 2016. The fourth offers a discussion on China’s narrowly-focused sanctions during 2016-17. The fifth is devoted to the first year of the Moon administration, focusing on envoy politics, the “three-noes controversy,” and Moon’s state visit to China. The final section provides concluding assessments of the factors critical in shaping Moon’s policy toward China and where the room for mending relations remains.
Topic:
International Relations, Diplomacy, Sanctions, and Grand Strategy
Political Geography:
China, East Asia, Asia, and South Korea

12. Progress and Implications of the China-Korea FTA

Author:
Li Si-qi, Tu Xin-quan, and Liu Bin
Publication Date:
07-2017
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The article focuses on the China-Korea FTA, analyzing the background of China-Korea bilateral economic relations, the characteristics of the China-Korea FTA and more importantly, the implications and future prospect of this free trade pact. So far, the China-Korea FTA is considered to be the most comprehensive compared with China's previous FTAs and may be the largest in trade terms among all the FTAs concluded by Korea and China, playing a positive role in advancing economic integration in the Asia-Pacific region. However, with lots of exceptions to tariff elimination and market access, as well as a 20-year transition period, the present version of the China-Korea FTA is far from the best in terms of the depth of liberalization and the scope of obligations on trade and investment rules. The recent bilateral diplomatic tensions due to the decision of deploying the THAAD missile system by the Korean government may also jeopardize bilateral economic ties between China and Korea, and further increase uncertainties of the China-Korea FTA. It remains to be seen whether the Chinese and Korean governments will handle this issue smoothly under the present sensitive political atmosphere and achieve substantial progress in follow-up FTA negotiations on services and investment.
Topic:
Diplomacy, Economics, Bilateral Relations, and Regional Integration
Political Geography:
China, Asia, South Korea, and Korea

13. Present Conditions of North Korean Industry and Possible Reconstruction Plans

Author:
Lim Soo-ho and Hong Seok-ki
Publication Date:
07-2017
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Since the collapse of industry during the 'Arduous March' (1995-1997), Pyongyang has continuously launched reconstruction plans but has failed to see a rebound. The key is to restore industrial linkages; however, the DPRK allocated a majority of state investment to the defense industry under the 'Military First Economic Policy.' As long as the 'strategic sector' retains priority, a sound outcome seems to be out of reach. In reality, North Korea's comparative advantage lies on labor-intensive business, with abundant labor forces at a low cost. After unification, such industries will have bright prospects with technology and capital not only from South Korea, but also from China and Japan. The economic integration scenario of the two Koreas -- whether radical or gradual -- will decide industrial policies for the upper half of the peninsula in the post-unification era.
Topic:
Economics, Science and Technology, History, Reconstruction, and Industry
Political Geography:
Japan, China, Asia, South Korea, North Korea, and Korea

14. A View from China on Triangular Relations

Author:
Wang Dong and Sun Bingyan
Publication Date:
08-2017
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
What will it take to jump start trilateral talks among Beijing, Seoul, and Washington over the situation on the Korean Peninsula, including the denuclearization of North Korea? If this subject has been on the minds of South Koreans in 2016-17 with some approaching their counterparts in Beijing and Washington, DC in the hope that such triangular talks can be launched—the more official, the better—not many Chinese have addressed what would be necessary to enlist their country in this endeavor. This chapter argues that, at present, China is unprepared to take this route. A major factor is the sense that there are imbalances that complicate the triangle. Beyond the substance of what would be on the agenda, Chinese are concerned by South Korea’s alignment and how it would affect the course of the discussions.
Topic:
International Relations and International Affairs
Political Geography:
China, America, and Korea

15. The Impact of Chinese Identity on Bilateral relations

Author:
Gilbert Rozman
Publication Date:
08-2017
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The construct “Chinese national identity” refers to narratives from China’s leadership, media, and academic spokespersons about what makes their country distinctive and how those ideas matter in relations with other nations. This is a relational concept that serves to distinguish the “self” and “other,” whose interpretation is shaped by interactions with other states. Seen from the vertical dimension of identity, these interactions are filtered through rhetoric aimed at promoting unity at home. Demonizing other nations while conveying an image of enemies or states seeking to contain China is a means to boost solidarity behind Communist Party control over a society with little means to dissent. The horizontal dimension of identity depicts bilateral relations as the result not of different national interests, but of clashing and often irreconcilable identities. Examining the way national identity on the Chinese side impacts five external relationships is the objective of this set of articles, which concentrate on Chinese rhetoric during the period of Xi Jinping.
Topic:
International Relations and International Affairs
Political Geography:
China

16. The Impact of Chinese National Identity on Sino-Japanese Relations

Author:
Yinan He
Publication Date:
08-2017
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Sino-Japanese relations have been in another volatility cycle since the Diaoyu/Senkaku Islands disputes flared up again in summer 2012. The downward trend seems to have bottomed out in November 2014 when the two leaders Xi Jinping and Abe Shinzo finally held their first meeting since entering office. However, the anticipated recovery has proved tenuous; the momentum toward further improvement has halted since early 2016 when confrontation escalated in both the South China Sea and East China Sea. While acknowledging the role of realist power shift and geostrategic rivalry in causing Sino-Japanese tension, this paper argues that a widening gap between their national identities is also highly relevant. The current Xi government has promoted a national reinvigoration campaign emphasizing Chinese history and culture, the socialist model, and defense of core interests, which runs counter to that of Abe’s Japan, a democratic and historically revisionist country. This national identity conflict has exacerbated mutual distrust, denied chances of reassurance, and generated domestic popular objections to diplomatic compromise between the two countries.
Topic:
International Relations and International Affairs
Political Geography:
Japan, China, and Korea

17. The Impact of Chinese National Identity on Sino-ASEAN Relations

Author:
Danielle Cohen
Publication Date:
08-2017
Content Type:
Working Paper
Institution:
Korea Economic Institute of America (KEI)
Abstract:
China and ASEAN possess tremendous opportunities for economic cooperation, but also face significant security challenges, particularly regarding the South China Sea. In both domains, China’s national identity has greatly influenced the trajectory of the bilateral relationship. China’s ASEAN policy is characterized by a desire to recreate the Sinocentric structures of the tributary system, a belief in the historical legitimacy of China’s maritime and territorial claims, a vision of China as a global economic powerhouse, and a sense that China has already “peacefully risen” and can more actively assert itself to reap the rewards.
Topic:
International Relations and International Affairs
Political Geography:
China