Are we now in a “new Cold War,” as headlines in recent months suggest? As the covid-19 pandemic rages on, relations between the United States and China have reached new lows, and President Trump threatened to “cut off the whole relationship.”
This leaves economists and policymakers considering a question that once seemed unthinkable: What would happen to global supply chains if this decoupling should occur? Which countries can step into the vacuum created by this superpower conflict?
Our recent study gives some answers. We show the building blocks are already emerging for a new international trade order — with a rapidly increasing number of poorer countries navigating this system. This has happened largely without the direction of global superpowers like the United States and China. Here is what you need to know.
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