Deglobalization is the main trend for 2023, says JP Morgan strategist.
The trade war between the US and China poses dangers to economic globalization.
247 com Sputnik International - The world is becoming more complex, and this process began long before the Covid-19 pandemic and the conflict in Ukraine, analysts believe. Deglobalization is expected to be the main trend for financial markets and the world economy in 2023, according to Jared Gross, strategist at JPMorgan Chase & Co.
Gross identifies three types of globalization—political, economic, and social. According to him, these three types of globalization reached a point of stability 5 to 7 years ago and then began to decline.
This trend began long before the Covid-19 pandemic and the consequences of the conflict in Ukraine, Gross explained. The turning point was the decision by former US President Donald Trump to introduce tariffs and trade barriers to China to alter Beijing's trade policy, which the US considered unfair.
Experts agree that Trump was overly concerned with the US-China trade deficit. Beijing, in turn, accused the Trump administration of engaging in nationalist protectionism and took retaliatory measures. By the end of Trump's presidency, the trade war was widely considered a failure in American society. However, the current US president, Joe Biden, has kept the tariffs in place.
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