The current pattern of economic integration and fracturing across different economies and sectors is best described as ‘reglobalization’.
Globalization is far from finished, but is changing in nature through countries’ emphasis on stronger regional links and the formation of economic blocs for sensitive and strategically important sectors. Full-scale decoupling from China is neither achievable nor desirable for the G7 and like-minded partners.
Trade policy has an important role to play in underpinning the positive aspects of a reglobalized world and in balancing geopolitical competition and cooperation, not just through coordinated efforts to strengthen supply-chain resilience, but also in enabling countries worldwide to benefit from the twin transitions to green and digital economies.
This briefing paper draws on insights from expert roundtable discussions and a high-level speaker series under the umbrella of the Chatham House Global Trade Policy Forum.
