The global trade environment is undergoing a transformation characterized by strategic decoupling among major economies, yet this shift does not signal a retreat from globalization. Instead, it reflects a reconfiguration of international economic relationships, where nations are forming tighter regional blocs while maintaining interconnected supply chains. This evolving geography of trade partnerships allows countries to reduce dependency on single markets without abandoning cross-border commerce. n nEconomic alliances are increasingly shaped by geopolitical considerations, technological competition, and supply chain resilience. Rather than dismantling global networks, firms and governments are diversifying sources and destinations of goods and investment. This recalibration supports national security objectives and economic stability, particularly in times of disruption. n nIndustries ranging from semiconductors to clean energy are witnessing the emergence of parallel ecosystems, each anchored in different regions but still linked through specialized trade corridors. These developments suggest that globalization is not ending, but adapting to new realities of risk management and strategic autonomy. n nAs countries reassess their trade dependencies, the result is a more fragmented yet functionally integrated world economy—one where cooperation persists within blocs, even as competition intensifies between them. n— news from CEPR
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Decoupling without deglobalisation: The new geography of trade blocs CEPR
Decoupling without deglobalisation: The new geography of trade blocs CEPR