Article: Redefining Global Trade: The Interplay of Geopolitics, Economic Resilience, and Sustainability?

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This paper explores the shifting dynamics of global trade amid rising geopolitical tensions between the United States, the European Union, and China. It traces the evolution from post-World War II American-led globalization to hyperglobalization, where China emerged as a global manufacturing powerhouse. While hyperglobalization spurred economic growth and lowered consumer prices, it also led to job losses, income inequality, and environmental degradation in developed economies.The COVID-19 pandemic and the ongoing US-China trade conflict have accelerated a shift towards economic resilience and national security. The US has responded by decoupling from China, particularly in critical sectors like technology and clean energy, viewing economic policy as integral to national security. Meanwhile, the EU, though aligned with the US in geopolitical concerns, remains economically dependent on China and has adopted a more regulatory approach. The EU seeks to balance its economic ties with China by leveraging trade regulations, such as the Carbon Border Adjustment Mechanism (CBAM) and the Corporate Sustainability Reporting Directive (CSRD), to encourage Chinese investment while promoting higher environmental and social standards.The paper also examines the increasing influence of environmental policies on trade, noting how both the US and EU are integrating sustainability into their trade frameworks. However, this trend raises concerns about the potential for environmental regulations to become trade barriers, further complicating international relations.