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Chapter 4
Analysis and Recommendations
Great Power Rivalry in South China Sea
China and the United States are in a healthy way, the region can flourish.
caught up in a different game than the The side which manages economy well
emerging power and the established is likely to walk away with the leadership
power struggles of the past. The over role in the region with maximum support
Implications to ASEAN
emphasis on political-military relationships of ASEAN nations.
often tends to ignore pre-dominant
economic issues. While the military conflict China and United States have huge
between these two states is far from mutual economic interests in the region.
inevitable because of serious hegemonic China is much more open to U.S. trade
conflicts; they have enormous common and investment than its allies Japan and
interests that are currently being neglected, South Korea. This openness provided
Evolving Geo-Strategic Matrix in South China Sea:
especially in the South China Sea. For the United States an opportunity to save huge
24 US, China should not be seen as a demon number of jobs during the 2007-2008
and US and its allies, not as angels and financial crisis, which was vital for its
vice versa. Both need to co-exist in the declining economy. Major manufacturers
region as it is, not as they wish it to be. of Western value added goods can only
survive with access to Chinese demand.
Economic Strategy vs Military The center of gravity of the world consumer
Strategy market is now Asia, mainly China. The mutual
interests are inseparable. Operational
The basic difference between an Sino-American economic relationship
economic strategy and a military strategy is has led to the poverty alleviation in the
that economic strategy is never a zero-sum third world. We have more basic goods than
game; both sides tend to gain from a we actually need. The national security
meaningful economic strategy. If United benefits from economic stability has
States and China and their respective resulted in considerable decline in global
allies in the region compete economically grievance and terrorism. Sino-American
