The recent power struggle between the US and China was overshadowed by the turmoil unleashed by the Covid-19 pandemic, when companies were forced to tackle acute issues including massive demand fluctuations, rampant spread of infections, supply chain disruptions, shortage of components and delays in freight transport.
Meanwhile, what was previously considered a trade war between the United States and China has evolved into a permanent state of tense relations. Most of the punitive tariffs on imports from China introduced by the Trump administration are still in place, and vice versa. Despite this, life goes on for international business – but how long can stability last?
How soon will geopolitics cause serious disruption to cross-border trade? When it comes to high-tech products with dual use – meaning that they can be used for both civilian and military purposes – the risks are particularly high.
It is not just possible but quite likely that the current conflict between the US and China will escalate with repercussions for business that are hard to predict.
With the help of defense and security policy experts at the Swedish Defense Research Agency (FOI), Business Sweden has outlined three alternative risk scenarios for the world market until 2030. The analysis focuses on the relationship between the two superpowers, the US and China, and the global market conditions that are likely to prevail in each respective scenario.
FOI has also identified on Business Sweden’s behalf seven technology areas that both the US and China give top priority. The report concludes with an analysis of how Swedish companies may be affected if the rivalry between the superpowers escalates in a cycle of measures and countermeasures.
Explore the insights in Business Sweden’s new report Technologies of power.
