From Ian Bremer/ GZERO

Globalization isn’t over

In more good news, rumors of globalization’s death are greatly exaggerated.

A visitor from another planet would be awed by the remarkable speed and scale of human progress in recent decades. Today, more than half of the world’s population belongs to the global middle class, and over 100 million people continue to be lifted from poverty every year. Two-thirds of humanity can now go online, up from just 16% 20 years ago. International air travel keeps getting cheaper, allowing more people to work and travel in more places. And global trade continues to grow despite facing all sorts of backlash.

This progress will continue because both developed and developing countries depend on it for the economic growth their citizens expect and demand – and the political stability that comes with it. Yes, national security-related sectors are becoming increasingly fragmented and polarized. But rather than spell the end of globalization, this fragmentation is setting the stage for a new form of globalization.

Take cutting-edge technologies, where US-China competition is fiercest and ever more zero-sum. The United States leads the commanding heights of artificial intelligence thanks to its unique ecosystem of venture capital, entrepreneurship, advanced semiconductor access, and world-class research universities. China, meanwhile, dominates the post-carbon energy transition through unmatched state investment in nuclear, wind, solar, electric vehicles, batteries, critical minerals, and related supply chains.

Neither side is happy about the other’s dominance, but globalization is stabilized by an effective balance of power between them. As with the security and commercial balance that most major countries seek between the two great powers, American leadership in AI and Chinese leadership in energy tech creates a natural buffer against global decoupling because other countries don’t want to choose sides.

If Washington decides to ban Chinese EVs and solar panels, Americans will be forced to pay more for their energy transition. Luckily, they are wealthy enough to make that choice. But the rest of the world won’t follow suit – they simply can’t afford not to buy the best-in-class green tech just because it’s made in China. Similarly, if Beijing bans the most powerful AI innovations coming out of America because it can’t control the flow of information and data – China’s leaders want ChatCCP, not ChatGPT – Chinese citizens will miss out on what I believe will be the best tools to unlock their potential and build their human capital. But the rest of the world will want access to the best AI they can find.

The result? A bilateral geopolitical structure that could fatally compromise globalization has become nearly impossible. Even if some in Washington and Beijing may want to do away with global interdependence, most of the rest of the world demands it. And it’s not possible in 2025 for whoever becomes the next American president to blow that up.

The headlines might scream “decoupling,” but globalization will continue – and these new technologies themselves will create unprecedented opportunities to connect the world in ways we can’t even begin to imagine.