IS NEO-MERCANTILISM THE NEW FORM OF

MERCANTILISM?

in order to answer this question we

must first know what is mercantilism
and what is Neomercantilism.
Seeks a balance between state
intervention and economic
NEO-MERCANTILISM freedom, with the aim of
MERCANTILISM promoting national economic
development.

Characteristics
Is associated with
the idea that
precious metals The world is experiencing a
were shift towards neo-mercantilism, Neomercantilism with Chinese
indispensable to a An economic system based on - State intervention in the economy. where geopolitics takes
powerful nation,
characteristics
the development and also - Protection of national industry. precedence
achivement of trade and exports. - Search for economic security and over economi?cs.
energy autonomy.
- Technological decoupling between
China and the West. Objectives:
United States European Union
Belt and Road Initiative (BRI):
mercantilism is associated with the idea that - Xi Jinping's most important - Open foreign
precious metals were indispensable to a economic and international
Consecuences markets for Chinese
powerful nation,
relations policy. companies.
- Implements policies such
- Seeks to strengthen China's
as "Buy American" and
"friend-shoring."
economic leadership by building
- Resists change, but is
Another prerequisite was a large population. Possible reduction in - Seeks to counter China by infrastructure in its neighboring
beginning to adapt.
Both were obviously related to military overall economic growth. investing in technology - Concerned about
regions and beyond.
- Motivated by domestic - Secure access to
power. and green energy. fragmentation of the
economic challenges and resources and
- Prioritizes manufacturing global economy and loss
job creation and economic foreign policy priorities. markets for China.
Weakening of the World of influence.
Trade Organization. resilience. - Advocates free trade
the means whereby this could be obtained and multilateralism.
was through a "favorable" balance of trade.
- Expand China's
international support
Higher inflation. base.

Damage to small and

medium-sized countries.

It can be conclude that

Neo-mercantilism borrows central ideas from mercantilism, but operates in a very different economic environment. It
emphasizes broader economic power through strategic intervention, technological advancement, and control of vital
resources. While some see it as a potential threat to free trade, others argue that it is a necessary adaptation to the
complexities of the globalized economy.

Collins, N., & O?Brien, D. (2022, November 11). Neo-mercantilism in action: China and small states. International Politics, 60(3), 635?658.
https://doi.org/10.1057/s41311-022-00419-3.
- L. Magnusson. (1993). In Mercantilism as the Pursuit of State ness. THE CONCEPT OF NEOMERCANTILISM (p. 235,236). L.
Magnusson. file:///C:/Users/sofiaospinac/Downloads/Concept%20of%20mercantilism.pdf
- Steinberg, F. (2023, May 5). The neo-mercantilist moment. Commentary Is Produced by the Centerfor Strategic and International Studies
(CSIS). from https://www.csis.org/analysis/neo-mercantilist-moment.
- Watson Institute for International and Public Affairs. (2022, April 11). The Global Roots of Neomercantilism. YouTube.
https://www.youtube.com/watch?v=RQgdvUlvHXM