*After the end of the unipolar moment, larger and smaller powers are vying for the best positions in the new world order. *
Market access, infrastructure projects, trade agreements, energy supplies and technology transfers are more and more being evaluated from a geopolitical point of view. Companies are increasingly faced with the decision of choosing one IT infrastructure, one market and one currency system over the other . The major economies may not decouple from each other across the board, but diversification (ânot all eggs in one basketâ) is gaining momentum, especially in the high-tech sector. As this develops, we cannot rule out the possibility that economic blocs will form.
The supply chain disruption has resulted in countries reorganizing their supply chains.
It remains to be seen whether this is purely for economic or logistical reasons (re-shoring or near-shoring), or whether geopolitical motives also play a role (friend-shoring).
The article talks about Chinaâs metamorphosis that is partially driving US economic warfare upon China. A shift from totally relying on export to a greater emphasis on internal consumption. Opening of new markets with its "Silk Road"Initiative plus new raw material access.
But it is not just China. Generally, for all of Asia as the new centre of the world economy, these geoeconomic disruptions are tantamount to a tsunami. And the disruptions could hit developing countries particularly hard. Whether they are being cut from global supply chains for the sake of resilience or due to geopolitical factors, this brings equally devastating results. Of course, some economies are hoping to benefit from the diversification strategies of developed countries (i.e. the âChina plus oneâ strategy).
AI & automation enters the fray making foreign cheap labor less important on manufacturing.
In this economic turmoil value-based foreign policy may be affected & even ignored.
in the Global South, there is already a great deal of distrust towards the existing world order. In reality, according to some, this amounts to the creation of the old and new colonial powers, whose supposedly universal norms do not apply to everyone but are instead violated at will by the permanent members of the UN Security Council.
Hey! The US can do its international meddling because no other power would DARE oppose us. WE will continue to do so with wrong or fake reasons as it fit into our leaderâs strategic visionâŚeven though such interventions results in death, mayhem and poor results.