Trade Wars: Analysing National Security through Geoeconomic Prism

The post-Cold War era was characterized by the divergence of national security and economics. Predominantly, policy makers focused on interdependence in economic relations leading to maximisation of economic gains for all the nations and considered it a positive-sum game often turning a blind eye to the outcomes arising when economic actions were pursued to secure strategic and geo-political goals. However, recent global developments have brought back attention of the global community towards the reality as it exists. Weaponisation of trade by using tariffs and economic sanctions to secure strategic goals is not a new phenomenon but what makes it unique is the systemically crippling of the watchdogs i.e. the international organizations responsible to establish and administer a rules-based system. The underlying message is unambiguous and clear that the world order is being re-invented to facilitate the competition between the incumbent super-power and newer players. Deeper economic integration amongst these nations as a result of various multilateral and free trade agreements makes the situation even more complex. In light of these revelations economy is now considered one of the fundamental elements of power and economic security forms integral part of national security. The innovation in the field of Internet of Things, Artificial Intelligence, 5G, 3-D printing etc. which proposes to revolutionise trade makes the subject matter of this essay more relevant since these new technologies are currently limited to only few nations. The essay is an attempt to highlight the growing importance of geoeconomics which forms part of hybrid warfare and poses a non-traditional threat to the national security of any nation. This essay is exploratory in nature and aims to analyze the interaction of national security and realm of international trade. The essay will rely on political theories and the domain of international trade and investment to ascertain the linkage between power, national security and economics. Further, as a case study, essay will analyze the responses of major powers specifically the U.S. and the rising Chinese geoeconomics influence and will try to map the policy options available to India within the present international economic law framework.