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🇰🇷 South Korea /Economy & Trade

The Speed of Globalization and the Speed of Counter-Globalization

From Hankyoreh · (5m ago) Korean

Translated from Korean, summarized and contextualized by DistantNews.

TLDR

  • The world is experiencing a period of significant change, marked by the weakening of globalization and the rise of protectionism, exemplified by events like the Russia-Ukraine war.
  • Despite predictions of decoupling, global trade continues to grow, with complex new value chains emerging, particularly between China and other nations.
  • The author argues that the fundamental drivers of globalization, such as corporate profit motives and the appeal of consumer products, ensure that the current international order, though challenged, remains resilient.

In its analysis titled "The Speed of Globalization and the Speed of Counter-Globalization [Reading the World]," Hankyoreh delves into the complexities of our current era, challenging the notion that we are simply witnessing a reversal of globalization. The article acknowledges the seismic shifts, recalling the dramatic collapse of the Soviet Union 35 years ago that ushered in the current era of globalization, amplified by the internet.

The phrase 'an era of upheaval' is an old idiom.

— Choi Pil-sooIntroducing the discussion on the current state of global change.

However, the piece argues that the current changes are far more nuanced. While figures like Donald Trump have risen on a platform of anti-globalization, and conflicts like the ones in Ukraine and the Middle East have disrupted supply chains, the reality on the ground is not a simple decoupling. Global trade, the article notes, continues to expand, reaching record highs. Even as US-China trade faces friction, new value chains are being forged through countries like Vietnam and Mexico, allowing China to maintain its export levels.

The reason is that globalization proceeded not as a political project, but out of corporate profit motives.

— Choi Pil-sooExplaining the underlying economic drivers of globalization.

The article further elaborates on the concept of 'de-risking' introduced by the Biden administration, distinguishing it from outright decoupling. While advanced sectors like semiconductors face US sanctions, non-advanced sectors see continued integration, as evidenced by Chinese companies acquiring Western assets and Western companies like Tesla and Apple maintaining significant operations in China. South Korea, with its complex value chains spanning both the US and China, has even seen its stock market reach new highs, driven by semiconductor demand.

The gift of 'consumable high-tech products' like the iPhone, created by the United States and China together for humanity, will continue to tempt humanity with its powerful allure.

— Choi Pil-sooIllustrating the enduring appeal of globalized products.

Crucially, the article highlights the role of the judiciary in acting as a check on protectionist policies, citing court rulings that have invalidated Trump-era tariffs. The author concludes that while the direction of change is clear, its manifestation is intricate and its pace is slower than the dramatic shifts of the past. The underlying economic drivers of globalization, rooted in corporate profit and consumer desire for products like the iPhone, remain powerful. Therefore, the current international order, though tested, possesses a strong underlying vitality. Hankyoreh urges a pragmatic approach, advocating for the flexibility shown by past governments in pursuing national interests rather than succumbing to simplistic ideological divides.

We must look directly at the world's economic infrastructure even amidst the noise of war.

— Choi Pil-sooEmphasizing the need to focus on economic realities over geopolitical conflicts.
DistantNews Editorial

Originally published by Hankyoreh in Korean. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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