Economic interdependence and security in Southeast Asia: A realist analysis

China has increasingly integrated with the international economy by implementing liberal economic reforms. As a result, the country has made huge progress in economic development to become the world's second largest economy. The effects of the economic rise of China on economic advancement and power politics in Asia Pacific is a remarkable topic in contemporary international relations. These effects started with China's financial support to its Southeast Asian neighbors during the Asian financial crisis of 1997. With China's help, Southeast Asian countries have experienced economic recovery and trade and investment flow has increased dramatically. They have also benefited from the opportunities provided by China for the maintenance of their economic growth. Specifically, the Philippines and Vietnam have proven themselves willing to take advantage of China's economic rise to contribute to their economic development. Therefore, they have sought through numerous channels to strengthen their economic cooperation with China. This cooperation has led to broadened access to markets, raw materials, energy resources and intermediate products. In exchange, they receive financial support and privileges such as low tariffs. As a result, while developing their economic relations with China, they have enjoyed significantly expanding trade volumes. These developments have paved the way for increasing interdependence among their economies. The question of whether these economic relations have an effect on their security relations is increasingly important. This study examines the impact of economic interdependence between China-the Philippines, and China-Vietnam in terms of their security policies in the context of the South China Sea dispute from the realist perspective of international relations. First, the study postulates that there is undeniable economic interdependence between aforesaid states, and that the Philippines and Vietnam are in economically vulnerable positions. Second, this study objects to Neoliberal claims that economic interdependence leads to peaceful relations among states because of the high cost of conflict. Contradicting these Neoliberal assumptions, this study argues that states have little tolerance in terms of security issues, and are encouraged to take necessary actions against external threats. Security issues and policies are significant for a state, since they are connected with the state's survival and territorial integrity. In this framework, this study describes how the Philippines, and Vietnam have responded to Chinese aggressiveness without considerations of economic loss. In addition, there is no evidence that economic interdependence or vulnerability have prevented the Philippines and Vietnam from behaving contrary to Chinese interests in the South China Sea dispute.