Abstract

The 2008 Global Financial Crisis brought about great changes to trade in East Asia. Such changes can be witnessed in two aspects. First, the network feature of East Asia’s economy based on a production network is gaining strength with China at its heart. This asymmetrical interdependence with China though is causing concern in Japan and South Korea about possible economic subordination. Secondly, there is the active U.S. offensive. The United States, which has pursued a global multilateral approach to trade, paid relatively little attention to this shift in economic power in East Asia since it was immersed in its War on Terror. Nevertheless, in a situation where the global multilateral trade order led by the United States has reached its impasse, it now is mobilizing a complex strategy in order to confront the growing influence derived from a rising China. Efforts by the United States to develop a regional architecture can be understood in this regard.

Unlike China’s method of selecting a group of major nations and seeking individual Free Trade Agreements (FTA) with them using its increasing power in the market, the U.S. strategy is network-like. It promotes a flexible FTA network, such as the Trans-Pacific Partnership (TPP). Even though the TPP is a mini FTA made up of four small countries, the United States is actively participating in this organization and carrying out a strategy of designing a platform that will reflect its interests. Australia and Vietnam have already been incorporated and are trying to influence its design and now Japan is preparing for admission. The influencing power that such a U.S.-led conception may display against the Chinese-led trade order depends on the sort of “architectural power” either country can display toward the region’s actors.

The full text in Korean is available here