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China's Recent Trade Policy to North America and Implications for the Korean Economy economic relations, economic cooperation

Author Jae-woo Choo, Mihn-Soo Kim Series 07-09 Language Korean Date 2007.12.30

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1. China's Diplomatic Security Policy and its Strategy toward North America

This part of the monographic attempt analyzes the impact of political relations between China and the North American on their economic and trade relations. The work asserts that there is no direct, causal linkage between political influence and the outcome of economic relations. Notwithstanding the absence of a causal relationship, politics, however, have a significant impact on the decision-making process per se, as well as the outcomes. Politicization of the economy still plays an extensive role. It would be too naïve to assume in today's global politics that economic interests can be secured through economic measures and only by those measures. Negotiations and bargaining are all processes of politics. Hence, the stronger the power a state has, the greater its leverage usually is. Nevertheless, strong and developed states more often tend to outsource the causes of their economic difficulties. In other words, they have a great propensity to blame the relatively weaker ones for intrusion-like advancement into their markets, thereby undermining the extant industrial fundamentals with cheaper products. From the developed states' perspectives, a scapegoat is necessary for decision-makers (usually lawmakers) to appeal to their constituencies and nation, thereby covering up their poor management of the nation's economy. Cognizant of the domestic effect on the trade disputes arisen from the US, China has shown a great deal of patience and cooperation, as it has in the security realm. China has been resilient in abiding by the principle of peaceful resolution of conflicts of interest, and this principle remains effective in China's economic and trade negotiation strategy. (The rest is omitted.)

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