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1. A Principled Middle Power Diplomacy Approach For South Korea to Navigate the U.S.-China Rivalry

Author:
Saeme Kim
Publication Date:
10-2021
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
In the context of growing US-China tensions, South Korean administrations have opted for degrees of strategic ambiguity, refraining from overt actions that suggest South Korea is taking sides. While strategic ambiguity has been moderately successful, there are limits to this approach which make it unsustainable. This paper will argue that rather, South Korea needs to apply a principled middle power diplomacy, which refers to a middle power carrying out roles expected of it in accordance with a set of rules or values that uphold the liberal international order. The goal of principled middle power diplomacy would be to shape the environment in which the current great power rivalry is unfolding, in order to moderate the fallout of great power competition. After an analysis of South Korea’s middle power diplomacy, this paper will recommend that South Korea double down on its commitment to multilateralism so that it can augment its roles as a facilitator and agenda-setter on the international stage.
Topic:
International Relations, Foreign Policy, Diplomacy, Multilateralism, and Rivalry
Political Geography:
China, Asia, South Korea, North America, and United States of America

2. Building on the Middle: Diversifying South Korea’s Foreign Policy Narrative and Economic Ties

Author:
Carolin Wefer
Publication Date:
11-2021
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
The rivalry between the United States and China is affecting countries in its midst. This particularly applies to South Korea. The country is a strong economic player with a successful net of free trade agreements. Additionally, it has branded itself as a middle power, a multilateralist, and good international citizen. However, South Korea’s middle power perspective has recently assumed a literal definition of being situated in the middle of two great powers. Seoul’s dependencies on both the U.S. and China are undeniable. As the conflict intensifies, it is thus essential for South Korea to diversify its ties through trade policy and multilateral fora. This requires leaving the literal middle power definition behind and leveraging its economic standing towards an increase in international status, as well as refocusing on the figurative middle power narrative that brought the country to its initial global esteem. Through diversification and the build-up of its economic and multilateral prowess, South Korea stands to lessen the shocks of the U.S.-China rivalry. Joining RCEP and obtaining a guest role at the G7 were important steps in that direction. They offer an expansion of both regional and global ties and an involvement in discussions on the redefinition of international fora, but more can be done.
Topic:
Foreign Policy, Economics, Multilateralism, Rivalry, and Middle Power
Political Geography:
China, Asia, South Korea, and United States of America

3. Through the Looking Glass: Chinese Open Source Assessments of North Korea's Ballistic Missile Capabilities

Author:
Nathan Beauchamp-Mustafaga and Scott W. Harold
Publication Date:
09-2020
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
North Korea’s ballistic missile program has long been a concern for the United States, South Korea, and Japan. Foreign researchers have increasingly leveraged advanced open source intelligence technology and cooperated across countries to track the North’s developments over the last 25 years. But one country has been left out – China. Are there open source Chinese analyses of DPRK ballistic missiles, do they align with U.S. assessments, and is there anything for other researchers to gain from reading these analyses? This report examines Chinese assessments of North Korean ballistic missile capabilities between 1998 and 2017. We find that Chinese analysts have paid growing attention to the North’s missile capabilities but are still not as attentive as Western observers, from whom they draw most of their information and analytic insights. Chinese analyses broadly mirror Western experts’ conclusions about the state of North Korea’s missile capabilities, most notably that North Korea has a functional, if not fully perfected, intercontinental-range ballistic missile (ICBM) that can reach the United States with a nuclear weapon. However, there is little original Chinese analysis that would enhance foreign experts’ preexisting understanding of DPRK missiles.
Topic:
Security, Foreign Policy, Weapons, and Research
Political Geography:
China, Asia, and North Korea

4. North Korea’s Economic Strategy, 2018

Author:
William B. Brown
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
This chapter takes the perspective of North Korea’s leadership as it confronts difficult economic problems in the remaining months of 2018. The major current and potential issues are listed and prioritized. Short and longer-term remedies are presented, each with trade-offs that affect other economic and policy issues. Given the absence of direct reporting from North Korea, the issues and debates presented are speculative, designed to give the reader a more comprehensive understanding of North Korea’s current problems than is ordinarily presented in western media. Kim Jong-un’s recent diplomatic offensive, reaching out to South Korea, China, and the United States is, in this view, suggestive of these internal economic troubles in addition to the nuclear security issues. The troubles are both short-term—the collapse in trade with China in just the past few months—and long-term, the slow-motion collapse of the communist country’s “command” economy. And much more than in the past, the problems relate to the regime’s unusual and dangerous monetary system, money being a normal issue for most governments but a relatively new one for this still partially rationed, or planned, oriented system. The leadership may have little choice but to let the domestic economy move further from the plan—allowing decentralized market and private activities more sway—than ever before. This would help cushion the central government from losses due to the sanctions and open the door to a much more prosperous future. Without major moves in this direction, inflation and unemployment may cascade into social crisis. It should be noted, that the recent Assembly Meetings, which annually focus on the economy, gave little official indication of policy changes, only a sense of digging in further to protect the regime from outside forces. But just a week later, Kim may have telegraphed an upcoming sea change when, in his address to the Party Central Committee plenum, that he is instituting a new Party Line, socialist economic construction, as the total focus of the Party and the country. Major changes, if they are to occur, will likely come after the upcoming important summits with South Korea and the U.S.1 There is little doubt that the economy in 2018 is in very poor condition, delivering one of the worst productivity rates—productivity in terms of labor and of capital—in the world, but it is important to recognize that this is due not to natural circumstances but to decisions the government has made over the years, and trade-offs it has already made. This suggests that astute government policy can create solutions and restore growth. Remedies of the sort expressed here, for example in liquidating, that is selling or leasing state assets to private buyers, raising fixed prices for state delivered electricity and for water and other utilities, and giving large pay raises to the millions of state workers who now rely on rations, while culling their numbers, would require difficult economic and social trade-offs; one might say there is no free lunch for Kim and his regime although no doubt they are looking for one, even in these summits. The chapter discusses just what kinds of decisions might be made and the likely consequences. Negotiations being set with South Korea and with the United States, and likely more discussions with China, may weigh heavily in how far Pyongyang will be willing to go in these respects. In my view the regime will be looking for: outright aid, payments for pushing back the nuclear weapons program, and premature relief from sanctions, which would only give the regime time to avoid the hard choices needed to permanently fix the broken economic system.
Topic:
Diplomacy, Economics, Sanctions, Services, and Trade
Political Geography:
China, Asia, North Korea, and Korea

5. Japan in the Driver’s Seat? Reshaping the Regional Trade Order without the United States

Author:
T. J. Pempel
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
On January 28, 2018 representatives from eleven countries, following the strong leadership of Japan, agreed to a modified version of the Trans-Pacific Partnership (TPP). This new pact —renamed the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP), or TPP-11—was formally signed in Chile on March 8. The treaty will take effect once ratified by at least six member countries. Japan is planning to push the treaty through the Diet within 2018 and anticipating that it will come into force sometime in 2019. The agreement represented a major recovery by the eleven countries following initial expectations that TPP was dead after the election of Donald Trump. Trump, as an early follow through on his xenophobic and unilateral campaign promises, signed an executive order pulling the United States out of the TPP within one hundred hours of his inauguration. With that stroke of his pen, Trump wiped out 10 years of work on the so-called “Pacific” route to regional trade integration, anchored on the U.S. market. It also defied multiple analyses demonstrating the strong economic benefits that TPP would provide for the United States. Turmoil immediately prevailed among the remaining eleven signatories. Japanese prime minister Abe, for example, only weeks after Trump’s election announced, “TPP is meaningless without the U.S.” Singaporean prime minister Lee Hsien Loong argued, “if the TPP does not go ahead, it would be a great loss for the rest of the member economies.” The National Interest was typical in its skepticism about both the survival of TPP and the long-term implications for the Asia-Pacific. In an article entitled “TPP is Dead; Now What?” it observed: “The United States’ withdrawal not only throws away the potential for a trade agreement but may cause countries that expended significant political capital for the TPP to retreat from free trade for the foreseeable future.” That China will be the primary beneficiary of Trump’s withdrawal was a widespread conclusion.5 In fact, as the signing of the CPTPP indicated, all eleven countries were prepared to recommit themselves to the deal and to continue to advance the goals of a liberal trading order in the region.
Topic:
Treaties and Agreements, Economy, Trans-Pacific Partnership, and Donald Trump
Political Geography:
Japan, China, Asia, North America, Korea, and United States of America

6. Is the Belt and Road Initiative a Chinese-style Regionalism?

Author:
Tu Xinquan
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
In the last two decades, bilateral and regional trade agreements (RTAs) have been considered a primary force to advance the world trading system because the Doha Development Agenda of the WTO has stagnated since its launch in 2001. The continuous expansion of the European Union and the American-led NAFTA and TPP as well as bilateral FTAs between the United States and EU and their partners best exemplified this phenomenon. However, such an approach is facing serious challenges from rising anti-globalization sentiment originating in the EU and United States in recent years. In June 2016, the United Kingdom decided to exit the EU as a result of a referendum. This is the first time a EU member chose to leave. On January 23, 2017, at the start of his presidency, Donald Trump signed as his first executive order the withdrawal from TPP, which his predecessor spent years concluding with 11 partners. These two consecutive dramatic actions of the previous and current world leaders shocked the globe. Next to the WTO, regionalism is seen as the second-best choice in promoting globalization. Now, two regional initiatives led by developed countries are facing a serious backlash. The world is concerned that this means the end and a reversal of globalization. Since its WTO accession in 2001, China has also been actively negotiating FTAs with its neighbors as well as some remote partners such as Iceland and New Zealand. While its WTO accession package was praised for its ambition and courage, it is difficult to defend Chinese FTAs as comparable to those of developed countries in terms of market access and institutional changes. One explanation for that is China has made very high-level multilateral commitments. Another one is China is not in such a comfortable strategic and economic position as the United States in negotiating FTAs with either developed or developing countries. The former want to obtain more market access concessions and institutional reforms from China, while the latter are afraid to expose their domestic industries to China’s overwhelming competitiveness in manufacturing. In addition, the Chinese government seems more confident in its own institutions and unwilling to change them due to outside pressure, especially after the 2008 global financial crisis. President Xi Jinping proposed the Belt and Road Initiative (BRI) during his state visits to Kazakhstan and Indonesia in September and October 2013, which soon was made a top national priority and even included in the Constitution of the Communist Party of China at the 19th Party Congress in 2017. Nadege Rolland labels this China’s Grand Strategy1 and the organizing foreign policy concept in the Xi Jinping era.2 One key feature of BRI in comparison with RTAs is that BRI focuses more on improving physical connectivity rather than reducing institutional barriers. The logic of physical connectivity is undoubtedly powerful, especially for developing countries with poor infrastructure. The impact of more and better international links on the regional landscape could be huge, not only by boosting trade and commerce but also by easing flows of energy and other resources, stimulating technological innovation, influencing culture and politics, and shaping strategic choices. Given the fact that RTAs are facing serious difficulties, the BRI looks like an attractive and feasible alternative to promote regional economic integration and globalization. However, there are also plenty of uncertainties and ambiguities surrounding the BRI, particularly due to China’s centrality as well as its direction of economic and strategic development. Hence, this chapter explores BRI characteristics in promoting regional economic integration and whether it could become an alternative approach to regionalism and globalization for China as well as the world.
Topic:
Treaties and Agreements, Belt and Road Initiative (BRI), Economic Policy, Trade, and Integration
Political Geography:
China and Asia

7. Advancing the Regional Trade Order in East Asia with a Less Engaged United States

Author:
Korea Economic Institute of America
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
In the aftermath of Donald Trump’s election and immediate pullout from the TPP, a scramble ensued over how to proceed with constructing a regional trade order centered on East Asia. For China this brought closer scrutiny of its pursuit of the Belt and Road Initiative (BRI). In the case of Japan, questions followed about what to do with the residue of TPP. Others, notably countries in Southeast Asia, were left contemplating the balance between eastern exclusive regionalism and the western presence in regionalism. In the background were efforts in South Asia aimed at advancing economic integration with East Asia. A kind of free-for-all was in progress without the moorings that had been lost after the paradigm of competition between a U.S.-led TPP and a China hub-and-spokes BRI no longer was guiding the strategic calculations of Asian countries. Then, in March 2018 came Trump’s disruptive tariffs, threatening to set a trade war in motion. Four chapters explore the challenge of advancing a regional trade order in East Asia in the new circumstances of 2017-18. Tu Xinquan in Chapter 10 questions whether BRI is a path toward regionalism, delving deeply into the Chinese strategy for BRI. T.J. Pempel follows in Chapter 11 by exploring Japan’s thinking about TPP and the process of refocusing on TPP- 11 following the U.S. withdrawal. Chapter 12 by Sanchita Basu Das offers a hopeful ASEAN perspective on economic regionalism. Finally, in Chapter 13 Pradumna Bickram Rana traces thinking about re-energizing economic integration between South Asia and East Asia. With no finality to the RCEP talks and the recently concluded TPP-11 pact still taking shape and Trump’s “America First” trade policy casting a dark shadow, we aim to capture signs of a new trade order at a time of flux.
Topic:
Economics, Regional Integration, and Trade
Political Geography:
Japan, China, East Asia, Asia, and Korea

8. The Chinese Perception of the U.S.-China-ROK Triangle

Author:
Yun Sun
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
Since being applied to U.S.-Soviet-China trilateral relations after the Sino-American rapprochement in the early 1970s, the notion/theory of “strategic triangles” has been widely used to examine many trilateral relations. The model of “U.S.-China plus one” is popular among students of U.S.-China relations and, consequently, the policy community has witnessed an increasing amount of scholarship on triangles among U.S.-China-India, U.S.-China-Japan, U.S.-China-Russia, and even U.S.-China-Taiwan. Unsurprisingly, this begs the question whether a strategic triangle could be construed and constructed among the United States, China, and South Korea. Generally speaking, despite the trilateral nature of U.S.-China-ROK relations, the Chinese policy community rarely subscribes to the existence of a strategic triangle among the U.S., China, and South Korea. This is not necessarily because South Korea does not carry the same strategic weight as the two great powers, but more importantly is because China does not see South Korea as possessing the strategic autonomy to act as an independent player in the trilateral relations. Although arguably such autonomy might exist in economic and trade relations, on key political and security issues, the Chinese see South Korea as invariably constrained by the U.S.-ROK military alliance and unable to form its own independent national security policy. In writing about the post-Cold War period with an emphasis on geopolitics, Chinese authors do not often treat South Korean policy or Sino-ROK relations as autonomous. Given the great weight given to the U.S. role, it is important, therefore, to take a triangular approach in assessing these writings centered on South Korea. I do so first explaining in more detail why the “strategic triangle” framework does not apply, then examining views on how this triangle has evolved in a period of rising Chinese power relative to U.S. power and fluctuating U.S.-ROK relations as the leadership in Seoul changed hands, and finally returning to the triangular theme to grasp how this shapes China’s understanding of Seoul’s policies with emphasis on the ongoing Moon Jae-in era.
Topic:
International Relations, Diplomacy, Bilateral Relations, and Geopolitics
Political Geography:
China, Asia, South Korea, North America, and United States of America

9. Chinese Views of Korean History in the Cold War Era

Author:
Jin Linbo
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
This chapter draws a rough sketch of the evolution of Chinese views on Korean history in the Cold War era in three parts. The first focuses on the formulation of Chinese views of the Korean War in 1950 and the mainstream assessment of the war after Sino-South Korean diplomatic normalization in 1992. The second focuses on China’s attitudes and policies toward the two Koreas in the Cold War years. The third deals with the changes and limits of perceptions on Korean history after diplomatic normalization and their impact on bilateral relations between Beijing and Seoul. For centuries many Chinese have firmly believed that the relationship between China and the Korean Peninsula is like that between lips and teeth, they are not only close to but also dependent upon each other. If the lips are gone, the teeth will be cold. From the middle of nineteenth century, the geopolitical proximity and interdependence between the two have become the determining factors in formulating Chinese perceptions towards Korea. Since then the national security concerns symbolized by the sense of lips and teeth had been frequently stressed by some Chinese intellectuals and officials when both China and Korea were exposed to the growing imperialist expansion and geopolitical competition in East Asia. In order to maintain the traditional tributary relationship between China and Korea, China fought the first Sino-Japanese War in 1894-95. Although it was miserably defeated, and Korea was consequently annexed to the Japanese empire in 1910, the Chinese sense of lips and teeth remained undiminished. Rather, it was further strengthened among ordinary Chinese when the Cold War began and especially when the Korean War broke out in 1950. After the end of World War II, China faced a new situation on the peninsula. Korea was liberated from Japanese rule but soon divided into the Soviet backed socialist North Korea, the Democratic People’s Republic of Korea (DPRK), and the U.S. backed capitalist South Korea, the Republic of Korea (ROK). As a newly established socialist country, China naturally allied itself with the Soviet Union and viewed the DPRK as a close friend while regarding the United States and ROK as hated foes. The intensified Cold War confrontation between the two camps and two Koreas triggered the outbreak of the Korean War. In order to safeguard its own political, ideological, and security interests, China quickly got involved in the war by sending the Chinese People’s Volunteer Army (CPVA) to fight together with its DPRK friend against their common enemies. The war ended with a cease-fire armistice and created a friend and foe Cold War framework, which the new China was compelled to face even beyond the Cold War era. Under these circumstances, the majority of Chinese held the view that it was the capitalist enemy rather than the socialist friend who started the Korean War with a view to overthrowing not only the socialist government in Pyongyang but also the similar one in Beijing. Therefore, it was against this background that China’s attitudes and policies toward the two Koreas in the post-Korean War era were doomed to be ideologydriven and DPRK sympathetic.
Topic:
International Relations, Cold War, History, and Korean War
Political Geography:
China, Asia, South Korea, and North Korea

10. Chinese Views of Korean History in the Late 19th and Early 20th Centuries

Author:
Kirk W. Larsen
Publication Date:
08-2018
Content Type:
Special Report
Institution:
Korea Economic Institute of America (KEI)
Abstract:
In July 2014, Ambassador Qiu Guohong in preparation for Xi Jinping’s visit to Seoul stated that the “relationship between South Korea and China couldn’t be any better.”1 Among the many reasons for this—economic, geostrategic, cultural—was a shared sense of history. China and Korea, officials and commentators in both nations claimed, were close because of their agreement regarding the significance of their experiences as victims of foreign, particularly Japanese, imperialism in the 19th and 20th centuries. History, that constellation of memories, stories, and notions about the past, has often been deployed to reinforce conceptions of identity, to support certain courses of action, and to demarcate between the in-group and the other. But history is ever malleable and protean. Not only do individuals, institutions, and ideas change but so does the understanding of them. When one draws on the past, one inevitably focuses on a limited set of events or narratives that best serve one’s interests—to the exclusion of potentially equally valid candidates. Their utility can vary over time; one need only think of how figures such as Zheng He or Confucius have been imagined and re-imagined over the last century. This has been the case with the history of relations between China and Korea from the latenineteenth to the mid-twentieth centuries. For many Chinese, Korea has served first as a subject of contestation as China’s position in Korea was challenged by both Western and Japanese powers. Then, when it became increasingly clear that China (or the Qing Empire) was losing this contest, Korea became an omen of China’s own fate absent significant course changes. As Japan’s growing empire engulfed Korea and subsequently threatened parts of China, resistance served to bring China and Korea closer; many in China celebrated what they saw as courageous resistance to Japan—such as when An Chunggun assassinated Ito Hirobumi in 1909. Shared status as victims of Japanese imperialism in an age of “humiliation” brought the two closer, and the mutually shared memory of “humiliation” has been deployed by contemporary Chinese and South Korean leaders—Xi Jinping and Park Geun-hye—to foster greater levels of cooperation. However, past conceptions of China, Korea, and the Sino-Korean relationship have sometimes ranged far afield from the cherished tropes of humiliation and the struggle for independence. Even seemingly universally agreed upon symbols, such as An’s heroic 1909 assassination, find themselves subject to changing interpretations such as recent emphasis by some on his pan-Asian vision of Sino-Korean-Japanese cooperation rather than his bold anti-Japanese act. As interests and priorities change, so does the utility of any particular historical narrative.
Topic:
International Relations, Diplomacy, Imperialism, and History
Political Geography:
China, Asia, South Korea, North Korea, and Korea