2025/09/02 by Jostein Hauge, Bruno Houtzager, Alessandro Julian Hörmann · 1 citation
Social Sciences · Health Professions · Economics, Econometrics and Finance · #Asian Industrial and Economic Development #Employment and Welfare Studies #Global trade and economics
paper · doi:10.1016/j.geoforum.2025.104382
This paper examines the resurgence of industrial policy and national security strategy across the United States, China, and the European Union. We analyse how these major economic powers are implementing distinct approaches to industrial policy while pursuing similar objectives of technological leadership and national economic prosperity. The United States has adopted a hawkish stance with extensive trade policies and subsidies. China has pursued ambitious growth in a range of sectors through long-term planning and strong government control. The European Union has balanced autonomy with trade openness and somewhat less state intervention. Our comparative analysis reveals that while these policies may be successful in strengthening domestic economies, they collectively reshape the world economy in ways that may disadvantage other nations, especially in the global South. However, ‘connector’ countries in the global South are benefitting by forging strategic ties with several superpowers. Additionally, the rise of China gives hope for South-South development cooperation that upend existing imperial arrangements often characterised by North-South relations. We argue that the convergence of industrial policy and national security represents more than a temporary response to recent disruptions; it signals a fundamental shift in the world economy towards more economic nationalism.