The Supply Chain Diversification and India–South Korea Cooperation in a Contested East Asia in the Post-COVID-19 Era

Abstract

This paper analyzes the dynamics of supply chain diversification in a contested East Asia and their implications for India–South Korea cooperation in the post-COVID-19 era. Major powers have sought to restructure supply chain by designing a strategy to reduce their reliance on China-controlled supply chain. The United States–China trade and technological war, Asian regional powers’ escalating conflicts with a rising China, and pandemic-induced supply chain disruptions have played key roles in driving the restructuring process. India and South Korea, Asia’s two major economies, have also re-evaluated their supply chain strategies. As this paper explains, on the one hand, India has been striving to emerge as a supply chain hub for key industries by ending China’s control. On the other hand, South Korea has also been aiming to diversify its supply chain beyond China under the New Southern Policy. Against that backdrop, critical developments concerning supply chain cooperation have occurred between the two countries amid the COVID-19 crisis. The pandemic has not only facilitated the opening of high-level political exchanges on supply chain but also brought tangible outcomes, as Korean companies have become active participants in India’s quest to build an India-centric supply chain. I conclude this study by contending that the two countries are “natural partners” in reshaping the supply chain dynamics in East Asia in the post-COVID-19 era.