Sino-South Korean economic cooperation: An analysis of domestic and foreign entanglements

One of the most explicit manifestations of post-Mao China’s pragmatic foreign policy has been the significant shift in Beijing’s position vis-à-vis Seoul from a “non-policy” todefacto economic diplomacy. Despite the extent of cooperative endeavors, Sino-South Korean economic relations have been circumscribed by various domestic and external factors. While a further intensification of the cooperative relationship is projected for the second decade of Sino-South Korean economic diplomacy, the actual materialization of such prospects depends on how China and South Korea are going to maintain economic complementarity. More importantly, it also depends on when and how China is going to accommodate politically its economic relations with South Korea by resolving the issue of “two Koreas,” thus maximizing the potential benefits from its ties with Seoul and simultaneously minimizing the negative effects from the entanglements of various domestic and foreign factors.