DECOUPLING, de-risking, reshoring, nearshoring, friendshoring – welcome to the new era of globalisation. National security is increasingly being considered in terms of economic stability, leading to the rise of economic security agendas.

This has distorted trade and investment. In the past, investors allocated capital based on business considerations. Firms established footprints worldwide and linked up in global supply chains.

Now, investment allocation and trade flows are becoming more concentrated among countries that are geopolitically aligned, and no longer purely based on competitive or comparative advantages.