Oh, Joon Seok
A icle
In e na ional ade wa : Spice Road agains Silk Road
In e na ional T ade, Poli ics and De elopmen (ITPD)
P o ided in Coope a ion wi h:
Depa men o In e na ional Comme ce, Finance, and In es men , Kyung Hee Uni e si y
Sugges ed Ci a ion: Oh, Joon Seok (2025) : In e na ional ade wa : Spice Road agains Silk Road,
In e na ional T ade, Poli ics and De elopmen (ITPD), ISSN 2632-122X, Eme ald, Leeds, Vol. 9, Iss. 1,
pp. 2-11,
h ps://doi.o g/10.1108/ITPD-06-2024-0031
This Ve sion is a ailable a :
h ps://hdl.handle.ne /10419/319596
S anda d-Nu zungsbedingungen:
Die Dokumen e au EconS o dü en zu eigenen wissenscha lichen
Zwecken und zum P i a geb auch gespeiche und kopie we den.
Sie dü en die Dokumen e nich ü ö en liche ode komme zielle
Zwecke e iel äl igen, ö en lich auss ellen, ö en lich zugänglich
machen, e eiben ode ande wei ig nu zen.
So e n die Ve asse die Dokumen e un e Open-Con en -Lizenzen
(insbesonde e CC-Lizenzen) zu Ve ügung ges ell haben soll en,
gel en abweichend on diesen Nu zungsbedingungen die in de do
genann en Lizenz gewäh en Nu zungs ech e.
Te ms o use:
Documen s in EconS o may be sa ed and copied o you pe sonal
and schola ly pu poses.
You a e no o copy documen s o public o comme cial pu poses, o
exhibi he documen s publicly, o make hem publicly a ailable on he
in e ne , o o dis ibu e o o he wise use he documen s in public.
I he documen s ha e been made a ailable unde an Open Con en
Licence (especially C ea i e Commons Licences), you may exe cise
u he usage igh s as speci ied in he indica ed licence.
h ps://c ea i ecommons.o g/licenses/by/4.0/
In e na ional ade wa - Spice Road
agains Silk Road
Joon Seok Oh
School o Business and Economics, Sookmyung Women’s Uni e si y,
Seoul, Sou h Ko ea
Abs ac
Pu pose –The pu pose o his pape is o analyse he in e na ional poli ical economy o Ko ea and i s e ec s due
o geopoli ical ension be ween China and he USA.
Design/me hodology/app oach –Economic wa be ween China and he USA has p olonged longe han
expec ed. A e ma h o he COVID-19 pandemic, e o ming he supply chain has been he cen e o economic
ension be ween China and he USA. Qui e ecen ly, wi h he apid expansion o Chinese e-comme ce pla o ms,
dis ibu ion channels come upon a new economic ension be ween he wo. And now is he ime o pi o i s
pa e n o con lic om compe i ion in o coope a ion. In his end, economic diplomacy could be a use ul means
o gi e a signal o coope a ion. F om he iew o economic diplomacy, his pape ies o analyse he p ojec ed
ansi ion o economic wa be ween China and he USA wi h i s implica ion on he ade policy o Ko ea.
Findings –As an implemen a ion o economic diplomacy, China sugges ed he Bel and Road Ini ia i e (BRI),
enhancing ade logis ics among ela ed coun ies o gain compe i i eness. In 2023, he Biden adminis a ion
sugges ed he India-Middle Eas and Eu ope Economic Co ido as a coun e o BRI, which will be a h eshold
o changing ade policy om economic wa in o economic diplomacy. As a esul , i is expec ed China and he
USA will expand hei economic diplomacy in a way o p omo e economic coope a ion among allied s a es,
while he dis ibu ion channel wa would con inue o accele a e he economic ension be ween China and he
USA. Ko ea has o p epa e o and p o ide measu es handling his geopoli ical loca ion in i s ade policy o
economic diplomacy.
O iginali y/ alue –This esea ch con ibu es o he awa eness and unde s anding o ade en i onmen s om
he pe spec i e o economic diplomacy.
Keywo ds Ko ea, Economic wa , FTA, BRI, IMEC, K aljic ma ix, S a egic i ems, Silk Road, Spice Road,
Economic co ido , T ade logis ics
Pape ype Resea ch pape
1. In oduc ion
The ad en o globalisa ion has led o widesp ead economic in eg a ion, c ea ing global
p oduc ion ne wo ks and ma ke s. Howe e , he COVID-19 pandemic has ac ed as a
signi ican se back o his end. In he wake o COVID-19, an economic wa has a isen
be ween China and he USA, cen ed on he es uc u ing o global supply chains ollowing
widesp ead dis up ions. In e na ional poli ical economy (IPE) examines he powe dynamics
be ween s a es and he s uc u es o in luence wi hin egional economies. Consequen ly,
economic diplomacy has gained unp eceden ed a en ion. Economic diplomacy ocuses on
go e nmen ac ions ega ding in e na ional economic issues, dis inc om poli ical diplomacy
h ough i s ma ke -o ien ed app oach in o eign policy. Pu nam (1988) ca ego ises economic
diplomacy in o wo le els: unila e alism and bila e alism. Unila e al economic diplomacy (o
unila e alism) o en elies on ha d powe , in ol ing decisions on ade libe alisa ion o ma ke
p o ec ion wi hou nego ia ion. Bila e al economic diplomacy (o bila e alism) o mul ila e al
economic diplomacy (o mul ila e alism), by con as , in ol es nego ia ion among ade
pa ne s, esul ing in ag eemen s such as egional o global ee ade ag eemen s (FTAs).
ITPD
9,1
2
© Joon Seok Oh. Published in In e na ional T ade, Poli ics and De elopmen . Published by Eme ald
Publishing Limi ed. This a icle is published unde he C ea i e Commons A ibu ion (CC BY4.0)
license. Anyone may ep oduce, dis ibu e, ansla e and c ea e de i a i e wo ks o his a icle ( o bo h
comme cial and non-comme cial pu poses), subjec o ull a ibu ion o he o iginal publica ion and
au ho s. The ull e ms o his license may be seen a h p://c ea i ecommons.o g/licences/by/4.0/
legalcode
The cu en issue and ull ex a chi e o his jou nal is a ailable on Eme ald Insigh a :
h ps://www.eme ald.com/insigh /2586-3932.h m
Recei ed 2 June 2024
Re ised 9 July 2024
Accep ed 2 Oc obe 2024
In e na ional T ade, Poli ics and
De elopmen
Vol. 9 No. 1, 2025
pp. 2-11
Eme ald Publishing Limi ed
e-ISSN: 2632-122X
p-ISSN: 2586-3932
DOI 10.1108/ITPD-06-2024-0031
A as ange o s a e o non-s a e ac o s engage in economic diplomacy, na iga ing he
complex in e play be ween in e na ional and domes ic ac o s. De ining economic diplomacy
is ex emely challenging, bu one use ul de ini ion is “ he b oad concep o economic
s a ec a , whe e economic measu es a e aken in he pu sui o poli ical goals, including
puni i e ac ions such as sanc ions” (Blancha d and Ripsman, 2008).
To exe in luence in e na ionally, minis e s and heads o go e nmen s i e o demons a e
hei capaci y o na ional secu i y h ough wo p ima y app oaches, as shown in Figu e 1
(abo e): economic wa (o compe i ion) and economic diplomacy (o in e na ional
coope a ion). In he con ex o global supply chain es uc u ing, he economic con lic
be ween China and he USA has in ensi ied, ma ked by h ea s o supply chain dis up ions.
This has led o eme ging s a egies aimed a “c owding ou ” he USA om global supply
chains (去美戰略) o excluding China h ough alliances such as he Allied Supply Chain and
Chip 4.
While economic wa is inhe en ly “ empo a y” due o i s pains aking na u e, economic
diplomacy o in e na ional coope a ion o e a mo e “long- e m” app oach because i is gains-
aking. This pape analyses he ac o s con ibu ing o he p olonged na u e o his economic
wa and explo es po en ial ou comes o he supply chain ensions be ween China and he USA
om he pe spec i es o IPE o geo-economics. In conclusion, i highligh s he impo ance o
p epa ing o ade policy adjus men s and s a egic economic diplomacy.
2. In e na ional ade wa and s a egic i ems
2.1 Supply chain
The supply chain encompasses a ne wo k o in e connec ed supplie s in ol ed in each s age o
p oduc ion, om aw ma e ials and componen s o he inished goods o se ices. This
ne wo k can include endo s, wa ehouses, e aile s, eigh s a ions and dis ibu ion cen es.
E ec i e supply chain managemen is a “c ucial p ocess because an op imised supply chain
esul s in lowe cos s and a mo e e icien p oduc ion cycle” [1]. Wi hin he supply chain, a
leading company ypically holds go e nance powe , enabling i o coo dina e scheduling and
exe cise con ol ac oss he in e connec ed supplie s, esul ing in educed cos s and sho e
p oduc ion imes (Ge e i e al., 2005)[2]. Since he 2000s, o wa d and backwa d in eg a ion
ha e been key s a egies o managing ime, cos and unce ain y in supply chains. Fo
example, Toyo a’s Jus -In-Time (JIT) sys em demons a ed he e iciency o locally
concen a ed supply chains un il dis up ions om he 2011 Eas Japan Ea hquake and he
Figu e 1. Recen end o economic diplomacy
In e na ional
T ade, Poli ics and
De elopmen
3
Thailand lood. Following supply chain shu downs in 2020, many businesses shi ed om
local o global supply chains, u ilising ad ancemen s o he in o ma ion echnology (IT) and
anspo a ion echnologies o geog aphically di e si y ope a ions. As he need o a
sys ema ically unc ioning global supply chain has g own, a leading na ion, much like a
leading company, o en assumes go e nance powe in in e na ional ade and in es men , as
illus a ed in Figu e 2 (below), by aligning wi h he leade ship o a dominan ma ke
compe i i eness, which makes his leade ship aluable.
The COVID-19 pandemic deal a se e e blow o he global supply chain, causing sudden
lockdowns ha led o widesp ead supply chain dis up ions. To mi iga e he isks o u u e
global dis up ions, supply chains ha e begun es uc u ing o ope a e on a mo e egionally
segmen ed basis. In his shi owa d egional supply chains, China and he USA a e a he
cen e, d awing allied coun ies wi hin hei sphe es o in luence. This alignmen helps explain
why he economic wa be ween China and he USA has las ed longe han an icipa ed.
2.2 S a egic i ems
China has es ic ed expo s o wo a e me als, gallium and ge manium, which a e c i ical o
semiconduc o p oduc ion. K aljic (1983) highligh ed he impo ance o managing “s a egic
i ems” wi hin he amewo k o supply chain managemen , as shown in Figu e 3. K aljic
emphasises he need o s eng hen and di e si y c i ical i ems. The K aljic ma ix p o ides a
aluable ool o iden i ying essen ial i ems ha equi e ocused managemen wi hin he
supply chain.
K aljic iden i ied he impo ance o managing “bo leneck i ems” in s a egic supply chain
managemen – i ems ha p esen high supply isk bu ha e ela i ely low business alue. Due
Figu e 2. Supply chain
Figu e 3. K aljic ma ix
ITPD
9,1
4
o he po en ial cos s associa ed wi h non-deli e y o comp omised quali y o s a egic i ems,
hese mus be closely moni o ed and con olled. F om a isk managemen pe spec i e,
es ablishing medium- e m business ela ionships and collabo a ion wi h supplie s is essen ial.
Fo example, Sou h Ko ea impo s o e 90% o i s u ea o ag icul u al and indus ial pu poses
om China [3]. Hea ily dependen on China o u ea supplies due o p icing ac o s, Ko ea
aced challenges when China imposed expo con ols on u ea, unde sco ing Ko ea’s
ulne abili y wi hin China’s sphe e o in luence. The Eu opean Union (EU) also aces
challenges wi h c i ical aw ma e ials (CRMs). China emains he EU’s sole supplie o
p ocessed a e ea h elemen s, while Chile supplies 79% o i s li hium. In esponse, he EU
in oduced he CRM Ac (CRMA) o suppo p ojec s aimed a inc easing “ he EU’s capaci y
o ex ac , p ocess, and ecycle s a egic aw ma e ials and di e si y supplies om he hi d
coun ies” [4].
2.3 Resilien supply chain alliance
In con as o China’s app oach o le e aging supply dis up ions o s eng hen i s in luence, he
Biden adminis a ion in he USA has adop ed a coope a i e app oach ocused on building
esilien supply chains (Pilla 2) h ough he Indo-Paci ic Economic F amewo k (IPEF), which
includes 14 membe coun ies [5]. The need o esilien supply chains has been u he
unde sco ed by he Russia–Uk aine c isis. The IPEF aims o add ess supply chain
ulne abili ies by os e ing global e o s o educe isks associa ed wi h concen a ed,
agile supply chains [6].
In Figu e 4, he EU Commission p esen ed he Single Ma ke Eme gency Ins umen
(SMEI) in Sep embe 2022, a c isis go e nance amewo k designed o ensu e he a ailabili y
o essen ial goods and se ices du ing u u e eme gencies. The SMEI ope a es on h ee le els:
con ingency planning, igilance and eme gency. The con ingency planning phase ocuses on
collabo a ion among membe s a es o mi iga e supply chain dis up ion and moni o inciden s.
The igilance phase can be ac i a ed when a signi ican dis up ion is an icipa ed, enabling
speci ic measu es such as mapping and moni o ing supply chains and p oduc ion capaci ies.
Finally, he eme gency phase is ac i a ed in cases o se e e dis up ion o he unc ioning o he
single ma ke [7].
Es ablishing a esilien supply chain h ough in e na ional coope a ion may be appealing,
ye he eali y o en alls sho o he ambi ion. In Sou h Ko ea, he IPEF ook e ec on 17 Ap il
2024, a e an ex ended nego ia ion p ocess, ma king he i s mul ila e al ag eemen on supply
chains. As a esul , du ing non-c isis pe iods, he 14 membe coun ies will collabo a e o
s eng hen in e na ional ade, in es men and ade logis ics. In imes o c isis, membe
coun ies will ac i a e a “c isis esponse ne wo k”.
Figu e 4. Resilien supply chain alliance
In e na ional
T ade, Poli ics and
De elopmen
5
Con e sely, oppo uni ies o nego ia ion wi h China, Sou h Ko ea’s la ges ading
pa ne , a e essen ial o building supply chain esilience [8]. China has pu sued an indus ial
policy ocused on enhancing i s supply chain managemen capabili ies. In he semiconduc o
sec o , he decoupling be ween China and he USA has become inc easingly e iden . Con a y
o expec a ions, China has adop ed a policy o in e nalising i s supply chains, e u ning o he
in eg a ion s a egies o he 2000s a he han u he ing globalisa ion. A p omising
oppo uni y o ans o ma ion be ween he wo coun ies has eme ged ecen ly. Since
2015, China and Sou h Ko ea ha e main ained bila e al FTA, and wi h he second phase o
FTA nego ia ions cu en ly unde way, he e is an oppo uni y o s eng hen ade and
in es men ies, os e ing posi i e p og ess h ough in e na ional coope a ion.
2.4 China manu ac u ing exodus
Du ing he COVID-19 pandemic, China imposed sudden lockdowns wi hou p io no ice o
p epa a ion, hal ing p oduc ion and logis ics cycles. This “ze o COVID” policy may ha e
igge ed a shi owa ds “de- isking” China om supply chain dis up ions. Al hough China
s ill o e s signi ican ad an ages as “ he ac o y o he wo ld,” wi h as ma ke po en ial,
p olonged ade ensions wi h he USA, in ensi ied du ing he T ump adminis a ion, ha e
p omp ed global manu ac u e s wi h subs an ial USA ma ke bases o eloca e ope a ions amid
ising geopoli ical unce ain ies. Fo example, Nike and Adidas ha e shi ed much o hei
oo wea manu ac u ing o Vie nam, Apple has begun iPhone p oduc ion a a Foxconn in
Chennai, India, and As aZeneca has con ac ed p oduc ion wi h India’s Se um Ins i u e.
In he p e-globalised e a, de ining he Rule o O igin (ROO) was s aigh o wa d, as a
p oduc ’s componen s we e usually manu ac u ed and assembled wi hin a single coun y.
Howe e , wi h he complexi y o global supply chains, pa icula ly since 2012, de e mining
ROO has become a ime-consuming and subjec i e p ocess. ROO a e classi ied as ei he non-
p e e en ial o p e e en ial. The USA applies non-p e e en ial ROO o es ic impo s om
coun ies like Cuba, I an and No h Ko ea, while o e ing ade p e e ence p og ammes o
o he s. P e e en ial ROO a e used o de e mine du y- ee eligibili y o impo s om app o ed
coun ies [9], whe eas non-p e e en ial ROO play a c ucial ole in “coun y o o igin labelling,
go e nmen p ocu emen , en o cemen o ade emedy ac ions, compila ion o ade s a is ics,
supply chain secu i y issues.” [10]
China manu ac u ing exodus may nega i ely impac capi al in lows in o Hong Kong,
adi ionally seen as he Ga eway o China. In 2023, Hong Kong’s ini ial public o e ing
olume ell o a 20-yea low o $5.9bn [11]. While China-o ien ed business emains in Hong
Kong, which e u ns ully o Chinese con ol in 2047, non-China-o ien ed businesses ha e
mig a ed o Singapo e. As he ce ain y o con ac and owne ship igh s o ms he ounda ion
o capi alism, his capi al ligh om Hong Kong is likely o pe sis .
3. T ade logis ics and economic co ido s
Globalisa ion has allowed supply chains o le e age in e dependence and in e connec edness,
maximising e iciency. Howe e , while hese e iciencies ha e been bene icial, hey ha e also
c ea ed a e ile g ound o ic ion be ween ade pa ne s due o a “su i al o he i es ”
mindse and he p inciple o “winne akes all.” This in e dependence has also highligh ed
ulne abili ies; he global supply chain s uggled o manage he dis up ions caused by
COVID-19, p omp ing a shi owa ds egional in eg a ion ini ia i es, such as Associa ion o
Sou heas Asian Na ions, Regional Comp ehensi e Economic Pa ne ship, Uni ed S a es–
Mexico–Canada Ag eemen and Comp ehensi e and P og essi e Ag eemen o T ans-
Paci ic Pa ne ship. As he global economy seeks s abili y, collabo a ion o e compe i ion has
become inc easingly essen ial, wi h economic diplomacy eme ging as a p io i y. The
p olonged economic wa be ween China and he USA a guably needs o shi owa ds
economic diplomacy.
ITPD
9,1
6
The global supply chain is es uc u ing in o egional supply chains, building esilience by
ope a ing in egional segmen s ha can wi hs and c ises. Michael Po e in oduced he
concep o alue chain as “a se o ac i i ies ha a i m pe o ms o deli e a aluable p oduc
o se ice o he ma ke .” [12] Complex inished goods o en depend on global alue chains,
a e sing mul iple coun ies. As shown in Figu e 5, he alue chain consis s o supply chain
and ade channel componen s. While he ocus has adi ionally been on which coun y holds
lead s a us wi hin a egional supply chain, he emphasis is now shi ing o how hese egional
segmen s can be in e connec ed and elayed. In his con ex , he supply chain compe i ion may
e ol e in o a “channel wa ” in in e na ional ade, whe e ade logis ics will cen e on he
in e nal low o goods, s anda dising channel p ocesses and es ablishing au ho i y o e hese
channels.
3.1 T ade logis ics
I is na u al o go e nmen s o seek en i onmen s ha enhance compe i i eness wi hin in hei
coun ies. In e ms o ade, e ec i e ade logis ics a e essen ial o main aining compe i i e
ad an age. As a p e equisi e, a s ong IT managemen in as uc u e is indispensable. As
shown in Figu e 6, ade logis ics encompass he in e nal low o goods o ma ke , in eg a ing
physical in as uc u e wi h ope a ing so wa e – such as anspo hubs, wa ehouses,
highways, po s, e minals, ains and shipping essels. Key a eas o con lic in ade logis ics
in ol e he s anda disa ion o channel p ocesses and de e mining who holds go e nance o e
ope a ion o hese logis ics sys ems. This is equally ele an wi hin he digi al economy.
Recen ly, Chinese e-comme ce – o en e e ed o as C-comme ce – has agg essi ely sough o
gain con ol o e digi al dis ibu ion channels, in e connec ed deli e y ne wo ks and ade
logis ics ia digi al pla o ms. Chinese pla o ms such as Taobao, Temu and AliExp ess a e
ac i ely wo king o inc ease hei mon hly ac i e use s (MAUs), posi ing hemsel es as
coun e weigh s o USA-based pla o ms such as Amazon and eBay in digi al ade [13].
When he agenda o es ablishing in e na ional ade logis ics is in oduced o ele an ade
membe s ac oss a ious coun ies, ini ial p og ess and e ec i e esponses a e o en achie ed.
Howe e , e o s soon encoun e obs acles ela ed o s anda dising logis ics p ocesses and
es ablishing ope a ional go e nance. G ea e eliance on in e na ional ins i u ions could help
esol e hese issues (Bayne, 2017). Ye go e nmen s equen ly p io i ise domes ic in e es s,
Figu e 5. Supply chain . ade channel
Figu e 6. T ade logis ics
In e na ional
T ade, Poli ics and
De elopmen
7
and a e p olonged nego ia ions, he isk o in e na ional ag eemen s ailing inc eases. Amid
he economic wa be ween China and he USA, China launched a ade logis ics ini ia i e
known as he Bel and Road Ini ia i e (BRI), o One Bel One Road, in 2013. O en e e ed o
as he New Silk Road, he BRI aims o es ablish economic co ido s o ade logis ics. The
Wo ld Bank es ima es ha he BRI could boos ade lows by 4.1% and educe ade cos s by
1.1% [14].
In esponse, he Biden adminis a ion p oposed he India-Middle Eas and Eu ope
Economic Co ido (IMEC) in Sep embe 2023 o s eng hen anspo and communica ion
links be ween Eu ope and Asia as a coun e measu e o China’s BRI. IMEC has been well
ecei ed by pa icipa ing coun ies, wi h expec a ions o os e ing economic g ow h,
enhancing connec i i y and po en ially ebalancing ade and economic ela ions be ween
he EU and China [15]. Bo h BRI and IMEC a e ambi ious p ojec s aimed a boos ing
in e na ional ade h ough subs an ial in es men s in ade logis ics in as uc u e. Each seeks
o asse go e nance o e in e na ional ade channels, signalling ha he supply chain wa
may soon e ol e in o a ade channel wa be ween China and he USA.
3.2 Economic co ido s
Economic co ido s a e anspo ne wo ks designed o suppo and acili a e he mo emen o
goods, se ices, people and in o ma ion. These co ido s o en include in eg a ed
in as uc u e, such as highways, ailways and po s, linking ci ies o e en coun ies
(Oc a iano and T ishia, 2014). They a e ypically es ablished o connec manu ac u ing hubs,
high-supply and high-demand a eas, and p oduce s o alue-added goods. Economic co ido s
comp ise bo h ha d in as uc u e – such as ade acili ies – and so in as uc u e, including
ade acili a ion and capaci y-building measu es. The Asian De elopmen Bank in oduced
he e m “economic co ido ” in 1998 o desc ibe ne wo ks connec ing a ious economic
agen s wi hin a egion [16].
Economic co ido s a e in eg a ed ade logis ics ne wo ks, p o iding essen ial
in as uc u e o connec ing egional segmen s o supply chains. As supply chains
inc easingly ope a e in egional “chunks,” linking hese segmen s becomes e e mo e
impo an . Economic co ido s ypically include a ne wo k o anspo in as uc u e, such as
highways, ailways, e minals and po s. Ini ia i es like he BRI and IMEC use economic
co ido s as ins umen s o economic diplomacy, shi ing s a egies om ha d powe o so
powe , as shown in Figu e 7. Because less-de eloped o de eloping coun ies o en lack
su icien unding o in es in ade logis ics, hey end o welcome hese ini ia i es om
de eloped coun ies, which o e in e na ional collabo a ion and suppo . Howe e , hese
ini ia i es usually come wi h he condi ion ha pa icipa ing coun ies mus accep
s anda dised ade p ocesses and go e nance led by he sponso ing de eloped coun y.
Figu e 7. Economic co ido ini ia i es as economic diplomacy
ITPD
9,1
8
To succeed, economic co ido s mus mee h ee key condi ions [17]. Fi s , go e nmen
in e en ion is essen ial, as economic co ido ini ia i es p ima ily in ol e public
in as uc u e in es men s beyond he scope o he p i a e sec o . In ealising hese p ojec s,
go e nmen s mus econcile h ee ensions o ensu e hei policies a e mu ually suppo i e:
ensions be ween poli ics and economics, be ween in e na ional and domes ic p essu es and
be ween go e nmen s and o he s akeholde s. Second, in e media e ou comes should be
measu ed and demons a ed as esul s o economic co ido s, allowing pa icipan s o
expe ience angible bene i s h oughou hese longe - e m p ojec s. Finally, economic
co ido s should deli e b oade bene i s. Pa icipan s need incen i es o u ilise he
in as uc u e sus ainably. These bene i s may ex end beyond economic wel a e, such as
wages and income, o include social inclusion, equi y and en i onmen al gains, which suppo
he long- e m iabili y o he in as uc u e.
4. BRI s IMEC
4.1 Bel and Road Ini ia i e (BRI) - Silk Road
The BRI can be a mode n-day ealisa ion o he Silk Road concep , connec ing Eu ope as a
ma ke base wi h China as a p oduc ion base. Unlike he ancien Silk Road, which connec ed
ade ou es ac oss Eu asia, he BRI poses po en ial challenges due o i s ex ensi e
connec i i y. Fi s ly, he e a e social and en i onmen al ex e nali ies, such as inc eased
conges ion and acciden s om concen a ing a ic lows h ough limi ed links and nodes
wi hin ade ne wo ks. Secondly, while he connec i i y may bene i he p oduc ion and
ma ke bases a ei he end, egions si ua ed be ween hese hubs, h ough which highways and
ailways pass, may gain minimal ad an age. Thi dly, he e is o en a misma ch be ween whe e
cos s and bene i s a e ealised. T ansi egions ha acili a e ne wo k a ic o en see ewe
di ec bene i s compa ed o high-densi y nodes wi hin he ne wo k.
4.2 India-Middle Eas and Eu ope Economic Co ido (IMEC) - The Spice Road
The ancien Spice Roads once connec ed he Middle Eas and No heas A ica wi h Eu ope,
acili a ing he exchange o goods such as cinnamon, ginge , peppe and cassia, which, like
silk, se ed as a o m o cu ency. The IMEC p oposes a mode n ou e om India o Eu ope
h ough he Uni ed A ab Emi a es (UAE), Saudi A abia, Is ael and G eece. Since i s
announcemen in Sep embe 2023, some egional expe s ha e exp essed ese a ions abou
i s easibili y, pa icula ly ega ding he connec ion be ween he Middle Eas and Is ael. The
p ojec has aced delays due o he Is ael–Hamas wa . Despi e hese challenges, IMEC holds
po en ial o d i e economic g ow h and s eng hen connec i i y, especially as coun ies like
Vie nam and India eme ge as al e na i e manu ac u ing bases o companies eloca ing om
China. Fo Saudi A abia and he UAE, IMEC is no iewed as a challenge o China bu a he
as an oppo uni y o di e si y hei economies and solidi y hei oles wi hin he Middle Eas
egion [18].
5. Conclusion
A new ade wa be ween China and he USA has begun, wi h he Biden Adminis a ion’s
in oduc ion o IMEC as a coun e o China’s BRI. This shi could soon ans o m he na u e o
economic wa om a ocus on supply chains o one on ade channels. The China
manu ac u ing exodus was u he accele a ed by supply dis up ions du ing he COVID-19
pandemic.
Amids he economic ensions be ween China and he USA, he es uc u ing o global
supply chains in o egional ne wo ks has made signi ican p og ess. Wi h China main aining
i s s ance on expo con ols o s a egic i ems, Sou h Ko ea mus p epa e o esilien supply
chain managemen . In ela ion o China–Ko ea FTA, which is cu en ly unde going i s second
phase o nego ia ion, Sou h Ko ea should seek cla i y on he anspa ency o China’s s a egic
In e na ional
T ade, Poli ics and
De elopmen
9
