Geoeconomics vs. Geopolitics: Implications for Asia

Manik Suri, Harvard University, University of Pennsylvania
Devesh Kapur, University of Pennsylvania

Abstract

Asia is witnessing a growing divergence between “geoeconomics” and “geopolitics,” centered around China. While China offers unparalleled near-term economic opportunities, cumulative decisions taken by thousands of American, Japanese, Taiwanese, and Korean firms are ironically helping to build these countries’ most formidable strategic competitor. Beijing’s growing competitiveness – and assertiveness – is forcing Asian nations to hedge against the risks created by deepening economic networks binding the region together.