As geopolitical rivalries deepen, global trade is undergoing a profound transformation. What once served as a bridge for mutual growth and cooperation has become a strategic tool in great power competition. Tariffs, export controls, and investment restrictions are now wielded as instruments of economic statecraft, signaling a shift away from liberal economic norms toward a landscape where national security concerns dominate trade policy. This shift is driving efforts to decouple major economies, especially between the US and China, leading to the reconfiguration of global value chains, relocation of manufacturing hubs, and intensified competition over critical technologies and rare earth materials.
The session examines how these shifts in supply chains are producing varied impacts across regions, affecting economic stability and development in Asia, Europe, Africa, and Latin America. It explores state responses to rising tensions and the risks of global trade fragmentation. The session also considers the resurgence of protectionism, its effects on economic resilience and innovation, and analyses the growing influence of middle and emerging powers in shaping trade governance within an era of strategic interdependence.
Discussion Themes:
- How are decoupling efforts, particularly between the US and China, reshaping global value chains and driving the relocation of manufacturing hubs worldwide?
- In what ways are tariffs, export controls, and investment restrictions being used as instruments of economic statecraft, and how is this shift affecting traditional norms of global trade cooperation?
- How are different regions—such as Asia, Europe, Africa, and Latin America—being uniquely impacted by supply chain disruptions and tariff conflicts amid escalating geopolitical tensions?
- What roles can middle and emerging powers play in responding to the resurgence of protectionism and in shaping a more resilient and equitable global trade governance system amid growing strategic competition?