If direct hot wars between great powers can be avoided, the primary battlegrounds for geopolitical competition will be the economy and technology. Today, all major world powers have begun using protectionist measures that were rare during the era of globalisation.
The Biden administration has continued and intensified the export controls and investment barriers initiated by the Trump administration. The ‘small yard, high fence’ strategy aims to slow China’s advancement to the technological frontier in sectors where the United States feels most vulnerable to its main competitor. American allies in Asia and Europe are cautious of the devastating effects of complete economic de-coupling from China but have aligned themselves with a de-risking strategy to reduce one-sided dependencies. In response, China has imposed export restrictions on rare earths, utilised import bans to…
