This study analyzes tensions between the US and China, employing different viewpoints of international politics, supply chain disruptions, and ripple effects on the real economy and financial market, and presents the following implications. Firstly, the US strategic approach to China shows that, unlike the previous Trump administration, the Biden administration maintains tensions and competition but stays away from direct conflict or confrontation. In response, South Korea should broaden its relations with the US to a more comprehensive diplomatic and economic alliance. At the same time, its strategic communication channel with China should remain open while strengthening its global strategic networks with other major countries. In doing so, South Korea must secure its position as a middle-power nation that can coexist among the great powers. Secondly, supply chain disruptions triggered by the US-China rivalry can be regarded as a geopolitical risk in global supply chains since the disruptions come from trade sanctions and foreign investment restrictions they are using against one another. Accordingly, South Korea needs to set up a risk management framework which includes an early warning system to enable preemptive responses based on risk measurement and evaluation. Thirdly, as the global supply chain shock caused by the conflict between the US and China is persistent and long-lasting, South Korean firms may experience greater shocks than during the COVID-19 pandemic. What would help counter this shock is to lay down the necessary infrastructures to upgrade its supply chains that can support the diversification of supply chains and networks of domestic firms and establish a smart logistics system. Lastly, financial sanctions against China by the US have the potential to significantly decrease foreign capital flows in the Chinese market, escalating capital outflow risks. Hence, it would be desirable for South Korea to monitor its linkages with Chinese financial institutions and to take appropriate preparatory actions to avoid the risk of economic sanctions targeting China by forming a cooperative relationship with the sanctioning authorities in the US.

Preface
Executive Summary
Overview

Chapter 1 Strategic Competition Between the US and China in the Biden Era and South Korea's Choices
　Section 1 Emergence of the Era of US-China Strategic Competition and the Direction of US Policy on China
　Section 2 US-China Strategic Competition Under the Biden Administration
　Section 3 China’s Response: A Balancing Strategy for US-China Relations
　Section 4 Scenarios for US-China Relations
　Section 5 South Korea's Choices: Implementing the ‘Adversary Symbiosis’ and ‘Align with the US, Engage with China’ Strategies
　References

Chapter 2 US-China Conflict in the Era of Global Supply Chains and Direction of Trade Policy
　Section 1 Introduction
　Section 2 Geopolitical Risks in Global Supply Chains
　Section 3 Impact of US-China Conflicts on Global Supply Chains
　Section 4 Supply Chain Early Warning System(EWS): Indicators and Structure
　Section 5 Conclusion
　References
　Appendix

Chapter 3 Economic Ripple Effects of Global Supply Chain Disruptions
　Section 1 Introduction
　Section 2 Literature Review
　Section 3 Empirical Analysis
　Section 4 Policy Implications and Discussion on US-China Conflicts
　Section 5 Conclusion
　References
　Appendix

Chapter 4 Examination of Potential US-China Financial Conflicts and Response Directions
　Section 1 Introduction
　Section 2 Cases of US Financial Sanctions and China’s Responses
　Section 3 Current Status of US-China Cross-Border Financial Transactions
　Section 4 Assessment of Potential Financial Conflicts Between the US and China
　Section 5 Methods for Estimating Risk in Chinese Capital Flows
　Section 6 Analysis Results
　Section 7 Conclusion
　References
　Appendix

ABSTRACT