A Brief Attempt to Define the New, “Brave New (Economic) World” Order

Besides just US-China relations, clearly the global world economy is undergoing a huge de facto reset resulting in a whole new nexus of international relations.  This reset has resulted in a twin platform based on (i) a sterner diplomacy & better mutual - i.e., primarily economic & military - interests and (ii) betterment for the prospects for the wealth of nations, beginning at home.  It’s global in the sense that this refers to every country, everywhere.

Take US-Europe as a start.  There is no mystery that Europe has embarked on a radical deregulation campaign with a serious intent to do a minimum of four (4) things that reflect the “bigger picture” & “changed EU-US relationship … and a radical deregulation campaign with clear intent” according to one publication out of the Corporate Europe Observatory (3 April 2025): (i) a “reboot Europe” enterprise, so so-called MEGA not MAGA, as written on on earlier occasions based on the wholesale repudiation of over- regulation & obstructive, onerous rules & regulations that inhibit competitiveness, (ii) a greater reliance on “self”, meaning both more self- determination in this post-modern context & more importantly more self-defence with less reliance on anachronistic post WW II Marshall Plan era vestiges, structures & institutions, (iii) a relaxation of rules/“regs” that hinder enterprise especially w.r.t. SMEs that represent approx. 99% of all businesses in the EU and (iv) a rebalancing of capital accounts – including things like what the best & “optimal” reserve currency (or mix), present v. future role of CBDCs v private issues is - in every country’s BoP.

Next, take US-China.  Blustering, bombastic & escalating tariff & other trade war-type of rhetoric has shown to be counterproductive.  Published calls from the Chinese politburo publicly announcing a “plan to counter impact” this trade war (Business Live (25 April, 2025), “diagnosing trends … preparing for a long trade fight” & “doubling down on boosting domestic demand “ are all not dissimilar indications that relations have, or are, soured &/or souring under current terms & conditions.

In addition, China has publicly admitted that the “impact of external shocks has increased “.  China has also sought to “work with the international community to actively uphold multilateralism & oppose unilateral bullying practices.”  As the periodical “Hong Kong Science & Technology: Business Live” published in the S. China Morning Post (28 April, 2025) wrote, there is an urgent imperative to “act fast & agile” to try and help mitigate supply chain disruptions.

All in all, the frosting of US-China relations is, and has been, not too dissimilar to other international relations and this has led to an ambiguous forecast for global growth, inflation v deflation/disinflation & so forth.  Both the current & capital accounts of every major, serious countries’ BoP is ineluctably affected, including obviously China as well.  One last note on US-China, and particularly the tension between the U. S. and China over tariffs, tariffs will more-than-likely increase the costs for businesses and customers.  Tariffs will also result in some of the supply chains shifting away from mainland China.

Now, lump together NAFTA - viz., N. American Free Trade Assn between the US, Canada & Mexico - along with the rest of the world.  There’s frostiness these as well, as the brilliant, new Canadian PM & Mexican President have both so adroitly pointed out.  The tone is one of part defiance as a result of flagrant insult, on the one hand, and recognition, realisation & admission of mutual need & dependency, on the other.

It is no surprise that the once the outright & blatantly bellicose language has softened.  But that is not enough.  This was made especially clear led by the leadership of the US’s largest trading partner with the longest contiguous border.  And so on & so forth w.r.t. smaller, so-called lesser trading partners - e.g., SE Asia, Africa, Latin & Central America, the Caribbean and so forth.

In sum, the overarching point is there has been an important, de- & ipso- facto reset of global international relations.  As the President of the European Commission so tersely & accurately put it, “it’s now or never”.  Mme. U van der Leyen was, and is, so right.  This is, after all, indeed a new, brave new (economic) world order.