Central Asia at the Crossroads of Energy and Strategy: Neomercantilism as the Framework of Great Power Rivalry

The latest issue of Sharp Scope explores one of the most decisive geopolitical theatres of the 21st century — Central Asia. Positioned at the heart of Eurasia and endowed with immense oil and natural gas reserves, the region has become the new front line of great power rivalry.

Applying the lens of neomercantilism — a modern form of economic nationalism where states harness markets to serve strategic interests — this analysis by Dr Lakshmi Karlekar examines how the United States and China are pursuing asymmetric economic gains at each other’s expense.

• China’s strategy combines pipelines that bypass vulnerable sea routes, large-scale investments under the Belt and Road Initiative (BRI), and state-owned energy giants acquiring key assets in Kazakhstan and Turkmenistan. The goal is clear: long-term energy security and an expanded sphere of influence.
• The United States, while invoking liberal trade ideals, practices its own version of neomercantilism. By shaping transit routes, supporting American energy companies in Kazakhstan and Azerbaijan, and anchoring global energy governance through the OECD and IEA, Washington ensures its dominance while containing Beijing’s rise.

For Central Asian republics, the rivalry offers both opportunities and challenges. Investments, technology transfer, and diversified export routes strengthen their economies. Yet dependency on competing external powers leaves sovereignty and long-term autonomy in question.

This issue argues that the application of neomercantilism theory provides the clearest explanation of today’s “New Great Game”, where energy, geography, and state power are inseparably linked.

The issue can be accessed in the PDF below.

Dr Lakshmi Karlekar

Dr. Lakshmi Karlekar is an Assistant Professor at the School of Humanities – Political Science and International Relations, Ramaiah College of Arts, Science and Commerce, Bengaluru. She holds a PhD in International Studies and has consistently ranked at the top during her academic journey at the Department of International Relations, Political Science, and History at CHRIST (Deemed to be) University, Bengaluru. Views expressed are the author’s own.