The long shadow of the Great Wall. Trade dependencies of V4’s countries on Chin

Abstract

This paper delves into the topic of trade interdependencies, which represent a crucial aspect of economic security policy. The increasing influence of China, coupled with its aspirations for global dominance, in addition to the challenge posed to the established liberal world order and the distribution of power, prompts us to explore the feasibility of utilising existing relationships as a means of economic coercion. Therefore, the research methodology employed in this study integrates complexities inherent in the realm of international political economy of trade and international economics. The study focuses on the trade relations of the Visegrád Group, drawing on data from the OECD, the International Trade Centre, and Eurostat, with a specific emphasis on trade in value added and gross trade, while examining the repercussions of Chinese imports. The findings suggest a modest yet rising dependence of V4 economies on China, particularly evident in the machinery, electrical, and electronics industries, which could potentially disrupt supply chains within the region and with Germany, their primary trade partner. This underscores the necessity for devising strategies at the European Union level and within the Visegrád Group to accurately pinpoint vulnerabilities and diversify existing trade ties.