Interdependence and Systemic Competition Embedded in US-China Conflict The relationship between the United States and China, which accounts for approximately 40% of the global economy and stands as a major economic and geopolitical actor, has emerged as a critical variable reshaping the international order, extending beyond mere diplomatic conflict. This article aims to understand the complex shifts in US-China relations and explore how their consequences are affecting South Korea. We seek to provide readers with in-depth insights through analyses from leading international media and research institutions such as EU Reporter, The Jerusalem Post, and Watson School. At the heart of the US-China conflict lies a complex interplay of economic interdependence and systemic competition. EU Reporter analyzes that the US-China relationship is fundamentally different from the Cold War era. During the Cold War, the United States and the Soviet Union engaged in an ideological confrontation while being largely economically disconnected. In contrast, the US and China today maintain a deep economic interdependence, together accounting for 40% of global economic output. Trade between the US and China amounts to hundreds of billions of dollars annually, with their economies closely linked across various aspects, including supply chains, investment, and technology transfer. Nevertheless, competition in technology, security, and global influence is becoming increasingly pronounced. The United States seeks to curb China's growth in 5G technology and artificial intelligence (AI) development, while China is strengthening its own system to counter the US-centric financial and regulatory order. This duality shapes the current US-China relationship into a unique structure of 'competition within interdependence.' The reason why the competition between the two nations cannot be explained solely by economic interdependence is due to the so-called 'rule-making power' and the systemic competition surrounding it. EU Reporter points out that both the US and China show strong intentions to propagate their respective international policies and orders to other countries. This systemic competition extends beyond mere economic activities, with conflicts becoming more complex due to the fusion of economic, technological, and military policies. The United States seeks to maintain an international order based on liberal democracy and market economy principles, while China presents an alternative order that legitimizes its state-led economic model and its own political system. This systemic competition significantly impacts South Korea's foreign policy, further reinforcing the imperative to re-examine its strategic direction on the international stage. South Korea achieved economic growth within the US-led free trade order, yet simultaneously finds itself in a situation where its economic relationship with China cannot be ignored. Taiwan finds itself at the center of this US-China conflict. EU Reporter emphasizes that the Taiwan issue is highly sensitive due to its role in global semiconductor production and its geopolitical location. Taiwan holds an overwhelming share in advanced semiconductor production, emerging as a critical strategic hub in global technological competition. Notably, TSMC (Taiwan Semiconductor Manufacturing Company) is a world-leading semiconductor foundry, a technological asset coveted by both the United States and China. Semiconductors are central to future technologies such as artificial intelligence, supercomputing, and military applications, which can be seen as one of the factors intensifying the US-China conflict. EU Reporter warned that a miscalculation by the US and China over the Taiwan issue could lead to severe geopolitical tensions across Asia. South Korea, also possessing global competitiveness in the semiconductor industry, is pursuing a strategy to maintain balance between the United States and China. Both nations require South Korea's technology and market, yet simultaneously pressure South Korea to align with them, creating a complex diplomatic situation. Geopolitical Hub Taiwan and the Importance of Technological Hegemony The military aspect is also a key factor in understanding US-China relations. According to research by the Watson School, the United States spent approximately $3.4 trillion on military competition with China from 2012 to 2024. This demonstrates that the US has significantly increased its military investment to maintain strategic superiority in the Indo-Pacific region. The United States is strengthening alliances with countries like Japan, Australia, and India, and countering China through multilateral security cooperation bodies such as the QUAD. China, too, is expanding its influence by intensifying military activities in the South China Sea. China is increasing its regional influence through the construction of artificial islands, establishment of military bases, and enhancement of its na
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