Will Deglobalization Give Birth to A “New Globalization Without China”?

How will the wave of deglobalization develop in the context of the decoupling of the US and China? Recently, the Atlantic Council (AC), a US think tank, published a study saying that trade under globalization is not just a question of profitability. Trade should not only be free, but also secure.

The report argues that the transformation that China is undergoing at the moment is seen as an expansion of the state’s role in economic affairs and an increasing self-sufficiency. The think tank also argues that China’s civil-military integration strategy also exposes the West to additional risks in trade and commerce with China.

At the moment, the major Western countries (the US, the EU, Japan and South Korea) all have a considerable dependence on China in the field of trade and economy. However, the experience of Japan shows that this trend is not irreversible.

The Atlantic Council believes that there is a need to systematize and sophisticate the process of decoupling from China, to continue selective decoupling from China in advanced and emerging technologies; to create resilient supply chains outside China and to use incentives such as tax credits, subsidies and financing concessions to encourage industries/businesses to reduce their dependence on China.

There is also a need to expand the G7 group to formally include Norway, South Korea and Australia, and to enhance coordination of intelligence interactions among developed democracies. The Atlantic Council identified selective decoupling and the creation of resilient supply chains as fundamental pillars of the new globalization.

In short, the tone of the Atlantic Council report is globalization without China, which is the basic picture of the new globalization in the eyes of Western think tanks. However, the new globalization that excludes China also shows a Western bias.

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