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Kathleen Weber's avatar

I continue to think that the future of world trade is robust, and its shape will surprise us.

By the logic of this piece, one day China will decouple from China. The things that used to be done in China will be outsourced to cheaper venues.

In a similar way, there was a time when the US steel industry led the world, but the US decisively decoupled from its own steel industry, turning to cheaper sources.

Basic idea: Nothing stands still in a capitalist world economy, but the whole almost always grows.

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MICHAEL  POWER's avatar

There is an assumption (mostly it seems by US-based commentators) that just because there may indeed be decoupling (even accounting for the 'redwashing' of trade via Mexico, Vietnam etc) between the US and especially China, there is decoupling happening globally. No. Trade is growing and not only between China and the rest of the world but between and amongst multiple other third parties. That the US is being de-emphasised in the pattern of world trade (especially in the non-carbon part of that trade) is not in and of itself concrete evidence of "deglobalization". Perhaps what we are seeing instead is "reorientation", the return of global trade to being centred on Asia?

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