South Korea Navigates US-China Rivalry Amid Espionage, Economic Balancing Challenges

South Korea is navigating a complex diplomatic and economic landscape amid escalating tensions between the U.S. and China. President Lee Jae Myung has sought to balance closer ties with China, as evidenced by his recent summit with Xi Jinping and efforts to maintain robust trade relations, while simultaneously strengthening security and trade alliances with the U.S., including approval of nuclear-powered submarines and increased defense spending. This dual approach reflects South Korea's critical position caught between two global powers, complicated further by concerns over Chinese industrial espionage targeting South Korean technology and legislative changes expanding espionage laws beyond North Korea. Western media are beginning to acknowledge China's rising global influence with a more nuanced tone, moving away from predominantly negative coverage, which contrasts with South Korea's pragmatic diplomacy aimed at preserving both economic growth and regional stability. However, the competing demands of the U.S. and China continue to challenge South Korea's ability to maintain a stable and cooperative regional order, with experts questioning the feasibility of multilateral trade cooperation under these conditions. Overall, South Korea's strategy underscores the broader geopolitical struggle in the Asia-Pacific, where economic interdependence and security concerns intertwine amid shifting global power dynamics.