The US and EU, and the Emerging Supply Chain Network: Politics, Prospects, and Allies

The Global Supply Chains have evolved from simply logistical achievements to being the bedrock of the global economy. Driven by technological advances and geopolitical shifts, this transformation underscores the critical role of GSCs in shaping economic landscapes and influencing global trade dynamics.

Western economies are increasingly intertwined with sectors of the Chinese economy, fueled by heavy Chinese investment in labor and R&D infrastructure. The growing gravitational pull of China’s economic orbit has diminished the influence of Western economies in fostering good governance and institutional norms. China’s expanding control over trading routes has also empowered it to act in ways that undermine the principles of open seas.

This book addresses the entangled issues of strategic dependency and economic vulnerability requiring a multifaceted policy response:

diversification of supply sources investment in domestic capabilities international cooperation to ensure a balanced and secure global economic landscape

The strategic recalibration involves reducing dependency on specific geopolitical actors and enhancing the resilience and flexibility of supply chains to bear future shocks. This includes:

fostering innovation incentivizing domestic industries critical for economic and national security building alliances to counterbalance the influence of geopolitical rivals

Global supply chains must serve both as conduits of trade and pillars of a stable, secure global order. It’s as much about revitalizing domestic economic dynamism and building new alliances as it is reducing Chinese and Russian influence in the transatlantic supply chains.

Niklas Swanström is the Director of the Institute for Secu-rity and Development Policy, and one of its co-founders.

Fredrik Erixon is the Director of the European Centre for International Political Econ-omy (ECIPE) ever since its start in 2006.

Mrittika Guha Sarkar is at the American University, Washington DC.