Trade Wars and International Relations: Implications for Global Supply Chains, Technological Advancement, and Energy Security

Abstract

This chapter explores the profound disruptions to globalization and trade liberalization caused by the resurgence of trade wars in the 21st century. Driven by geopolitical rivalries and shifting economic power dynamics, these conflicts have led to a restructuring of global supply chains through reshoring and friendshoring strategies. The chapter also examines the dual role of technological advancement as both a driver and a casualty of trade wars, with export controls and decoupling efforts reshaping global innovation. Additionally, it highlights the growing significance of energy security, focusing on resource access disputes, rare earth elements, and the geopolitical implications of fossil fuel dependency. Offering critical insights for policymakers, businesses, and scholars, this chapter provides a comprehensive analysis of the evolving landscape of international trade, economic competition, and global stability in an era of intensifying geopolitical tensions.