Globalisation 2.0 could see different players taking the lead

WITH key players like US and UK withdrawing partially from the globalisation juggernaut and calling for its closure, questions have been raised about its importance in the coming era. The withdrawals (rhetorical or otherwise) however, may give significant space to other groups of nations to embrace the idea to spur their own growth. In many ways, this could be globalisation 2.0, with an altered star cast and some rule changes. These countries are already savouring the sweet smell, even as debates continue.

The country which will most gain from this is China. While it participated in globalisation 1.0, it never really drove it. Now is its opportunity. The country is luring technology multipliers so that it can dominate a part of the world in emerging economic segments. It has announced that it will set up a $2.1 billion artificial intelligence industrial park with an eye on the $150 billion opportunity (by 2030).

What the Chinese say they would do, they always do. They even do things that they don't talk about! The country is also increasing visas for academics, Indian students and others who can catalyse the knowledge-based economy. In about five years, we should not be surprised if China takes pole position in technology-based industries. They will probably follow a dual policy of less AI/automation domestically (to save jobs) and seek more overseas opportunities. Even if the US does not lose in this game, China will gain.