Globalisation, but of a different kind

For a while now, we’ve been told that globalisation is in retreat. The US-China trade war, Brexit, supply chain disruptions, COVID-19-induced nationalism, the war in Ukraine, and the most recent tariff regime being rolled out by President Trump—all point to the fragmentation of the global order.

Countries are pulling back, reshoring industries, shutting down supply chains and prioritising national security rhetoric over free trade. For many, both on the left and the right, globalisation—far from being a panacea—is the problem. Maintaining this messaging also seems to be politically expedient.

The message seems to be clear: globalisation is over.

But is it?

What we are seeing is not the end of globalisation—but its evolution. The mistake lies in thinking of globalisation purely in terms of economic integration: the free movement of goods, services, capital and (selectively) people. But take one step back, and it is clear that interdependence is only deepening—just not in the way we imagined.

This is no longer a globalisation of economic outcomes; this is a globalisation of existential challenges. The issues we now face—climate change, cybersecurity, AI-driven risks and mass migration, among others—are not contained by borders. No matter how much countries want to turn inward, these challenges won’t just go away. If anything, they demand more cooperation, not less.

This is no longer a globalisation of economic outcomes; this is a globalisation of existential challenges

So, is globalisation really dying? Or are we simply seeing a globalisation of problems—and, whether we like it or not, a globalisation of solutions?

The illusion of deglobalisation

It is easy to see why many think globalisation is breaking down. The past few years have been an unfortunate masterclass in protectionism. And now President Trump seems insistent on rewriting the free trade playbook, likely going to result in a cascading impact.

Even the green transition, hailed as a global effort, is being shaped by nationalism. The US Inflation Reduction Act is designed to subsidise American industries. The EU is responding with its own measures. China, the world’s dominant supplier of rare earth minerals and EV batteries, has its own ambition. Everyone, it seems, is putting up walls.

And yet, for all the talk of decoupling, the world remains deeply interconnected. Supply chains aren’t disappearing—they’re just being rearranged. Meanwhile, cross-border data flows, digital trade and technological interdependencies continue to grow.

More importantly, the crises of our time—climate change, cyber threats, AI regulation, migration—cannot be solved in isolation. You can shut a plant. Or shut down trade routes. But you can’t shut out rising temperatures, cyberattacks, fraud or disinformation.

So, if this isn’t the old globalisation, what is it?

The globalisation of challenges

The old globalisation was voluntary—nations chose to trade, integrate, and connect. The new globalisation is inevitable—nations have no choice but to engage with problems that transcend borders. Three areas make this abundantly clear:

Climate change: No opt-outs

The global climate emergency epitomises globalisation’s evolution from choice to imperative. As the EU implements carbon border taxes and China continues to dominate renewable tech manufacturing, decarbonisation is reshaping trade despite nationalist posturing. But unilateral measures are hopelessly inadequate against climate change’s indifference to sovereignty.

No country can go it alone. The wildfires in Canada sent smoke billowing into the rest of America. Droughts in Africa are driving migration waves into Europe. Floods in Pakistan have had economic knock-on effects across South Asia.

Unilateral measures are hopelessly inadequate against climate change’s indifference to sovereignty

There is no “domestic” or “national” solution to climate change. The 2015 Paris Agreement was a recognition of this reality, but cooperation remains scrappy. Developing nations argue they are paying the price for emissions they didn’t create. Advanced economies are struggling with domestic opposition to carbon taxes and green policies.

Despite these disagreements, however, there’s no getting around the fact that climate solutions—be it carbon pricing, green tech investment or disaster response—have to be global.

Cybersecurity and AI: A digital arms race with no borders

Cybersecurity lies outside of the realm of national borders. Ransomware gangs in Eastern Europe can take down hospitals in the US. Or a cyber intrusion in Taiwan can disrupt supply chains worldwide. State-backed hacking groups are targeting infrastructure across the West, with Western intelligence agencies running their own operations in return.

Then there’s AI. The rapid development of AI is raising fundamental questions about security, economic competition and ethics. It is also resulting in a policy paradox. Should AI models be open-source or tightly controlled? How do we prevent deepfake-driven disinformation campaigns? Where do we draw the proverbial (regulatory) line?

The absence of global AI governance is an issue we will have to contend with soon. No single country can regulate AI. The EU is leading with its AI Act, but without global coordination, there will be loopholes. The same goes for cybersecurity. For all the geopolitical tensions, governments are being forced to cooperate on cyber threat intelligence and tech standards.

Migration and geopolitical instability: Walls don’t work

We’ve seen this movie before. Political instability and conflict lead to economic collapse and insecurity, people flee and neighbouring countries struggle to cope. Increasingly, however, migration is being driven not just by war but also by climate change and economic inequality.

The Institute for Economics and Peace estimates that 1.2 billion people could be displaced by the year 2050 as a result of climate change and natural disasters. Climate-related migration reveals perhaps globalisation’s darkest duality—that of economic integration and ecological breakdown driving migration even as inequality-driven xenophobia results in tighter physical borders.

But while borders can be tightened, none of that stops the reality that migration is a global issue requiring coordinated responses.

This globalisation isn’t optional

This new globalisation—of existential challenges—is unavoidable. The world isn’t getting less interconnected. Climate change, cyber threats, AI governance, migration—these aren’t battles that can be fought alone.

We can talk about deglobalisation all we want, but the reality is that the solutions to the biggest problems of our time require more cooperation, not less. The alternative? A dystopia where countries war over shrinking resources as AI and global warming spiral beyond control. Given these realities, globalisation persists today, not as an ideology but an inescapable reality.