Sara Lynne Kallas

Cooperative Hedging: A Collaborative De-Risking Strategy for Secondary States in the Asia-Pacific

Introduction

Cooperative hedging: a collaborative de-risking strategy for secondary states in the asia-pacific. Asia-Pacific secondary states use cooperative hedging to de-risk against China's weaponized economic interdependence, boosting autonomy without altering great power relations.

Abstract

This paper delves into the evolving dynamics of state behaviour in the Asia-Pacific region, with a focus on interactions between secondary powers. While the discourse on secondary states has traditionally centred on their strategies vis-à-vis great powers, this study highlights the growing cooperation and engagement among secondary states themselves. Drawing on network theory and the economics-security nexus, it argues that globalization has generated power asymmetries, with China emerging as a central hub. This asymmetrical economic interdependence has led to a security deficit, as China leverages its position to achieve strategic goals—a phenomenon termed “weaponizing asymmetric economic interdependencies.” In response, secondary states fearful of compromising their autonomy are increasingly strengthening ties with one another and engaging in cooperative hedging as a de-risking measure, without drastically altering relations with the great powers, because they fear the consequences.

Review

This paper presents a compelling and timely re-evaluation of secondary state agency in the Asia-Pacific, offering a significant contribution to international relations scholarship. Moving beyond traditional frameworks that primarily view secondary states in relation to great powers, the authors effectively highlight the increasing importance of intra-secondary state cooperation. The proposed concept of "cooperative hedging" as a de-risking strategy is particularly insightful, capturing a nuanced response to regional power asymmetries. By drawing attention to this collaborative dimension, the study provides a more sophisticated understanding of the evolving security architecture and the multi-directional nature of state interactions in a complex geopolitical landscape. The theoretical underpinning of the paper, linking network theory with the economics-security nexus, is robust and highly appropriate for analysing the current dynamics. The argument that China's economic centrality has led to "weaponizing asymmetric economic interdependencies" offers a clear and persuasive rationale for the security deficit experienced by secondary states. In response, "cooperative hedging" is posited as a pragmatic strategy for these states to bolster their autonomy without necessarily escalating tensions or fundamentally realigning their great power relations. This nuanced approach, driven by a realistic assessment of consequences, is a critical strength, explaining why outright balancing against dominant powers might be avoided in favour of more subtle, collaborative de-risking. Overall, this paper offers valuable analytical tools for comprehending the intricate strategic calculations of secondary states in a globalised and increasingly interdependent Asia-Pacific. It not only challenges existing paradigms but also introduces a valuable conceptual framework for future research. The emphasis on "cooperative hedging" opens avenues for empirical investigation into specific mechanisms, conditions for success, and the long-term effectiveness of such strategies in preserving state autonomy. This study is poised to become an important reference for scholars and policymakers seeking to understand the evolving regional order and the complex interplay of economic and security imperatives.

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