Geostrategic globalization: US–China rivalry, corporate strategy, and the new global economy

Geopolitical rivalry has intensified to a degree not seen since the Cold War. The US and China have embraced interventionist state-capitalist practices in competing attempts to gain control over the transnational networks that underpin globalization. As a result, multinational corporations (MNCs) are exposed to unprecedented levels of geopolitical risk. Most MNCs are responding in one of two ways. Some hedge and try to remain aloof from the US–China rivalry, while others align with the geostrategic objective of states in order to secure patronage (e.g. subsidies and public contracts). If MNCs maintain global production networks bridging the US–China divide they will attenuate the fragmentation of the global economy. Alternatively, if MNCs align with states’ geostrategic objectives, they will accelerate economic fragmentation. We conclude that this emergent meta-context and MNC risk mitigation strategies are shaping what we refer to as geostrategic globalization.