Session: Session 3 / Grand Ballroom I
Date/Time: April 30, 2013 / 15:30-16:45

Panel Description

In late-2010, China halted the export of rare earth minerals to Japan as part of their escalating standoff over the Senkaku/Diaoyu Islands. Key raw materials for the functioning of the modern global economy, rare earth minerals have since gained notoriety given China’s near-monopoly of their production. What the standoff revealed was that, rather than resorting to a shooting battle, it appears states are increasingly relying upon non-military tools such as trade embargoes to enforce their interests. Is this, then, the future of inter-state conflict in the twenty-first century? Has economic interdependence rendered open warfare obsolete whilst simultaneously empowering trade wars and economic sabotage? The ability to hold trade hostage to political objectives suggests the emerging East Asian economic and political order may be one of “antagonistic prosperity.”

Guiding Questions

1. How likely are we to see similar cases of trade sabotage and embargoes as direct responses to political and security tensions?
2. What was the turning point in Asia from the norm of “separating politics and economics” to the present situation?
3. Can joint investment projects and regional economic initiatives mitigate some of these animosities?