REGIONAL ECONOMIC INTEGRATION IN THE POST-PANDEMIC PERIOD(USING THE EXAMPLE OF SOUTHEAST ASIA)

Abstract

Relevance. In the post-pandemic period, not only connections are restored, but global chains are also un- dergoing reformatting under the influence of a greater than before political conjuncture. The research pur- pose is to identify and substantiate the influence of rivalry between the US and China in Southeast Asia on the global chains reformatting, to determine the possibilities for the parties to use "friendshoring", "circle of friends" and other tools as a veiled form of political pressure and its influence on the relocation and reori- entation of global chains and also to establish a link between the effectiveness and sustainability of the mea- sures taken and their impact on regional economy.

Methods and methodology. A number of interdisciplinary approaches are used: the theories of integra-

tion and regionalization, securitization, etc. Based on these approaches, the authors try to present a com- prehensive view of the economic and political processes in the region, their relationship, and specifics in the post-pandemic period. Attention is drawn to the "spillover" of political decisions into the economy, how this affects trade and production chains, and how regional economies are trying to respond to these challenges. Results. During the time of the pandemic, the problem of unreliable chips supplies was revealed. In the previous period, there was a shift in production to enterprises in Southeast Asia. On August 9, 2022, the US Chip and Science Act was passed with the goal of bringing the share of semiconductor production to 30% of global production by 2030. The United States declares a restriction of trade in components limited to trusted countries (friendshoring). China launches the "Global Security Initiative" (April 2022), where it em- phasizes the commitment to "an open world economy", "ensuring the sustainability of global supply chains." China plans to increase its foundry capacity from 15% in 2020 to 24% by 2030. Southeast Asian countries are using regional integration to defend national interests in the face of political pressure from the rivalry between the US and China.

Conclusions and discussion. The pandemic has certainly affected the reformatting of global production and supply chains. The trend in favor of sustainability over efficiency will continue. This process is not linear and is adjusted by the national interests of both global actors and the states of Southeast Asia, which will defend their own interests through regional integration, minilateralism, and other forms of managing production and supply chains.