Tag: deglobalization

Essay on China & macro, with Western narrative violations: “the notion that the world is deglobalizing would seem laughable to anyone living in Dubai, Singapore, São Paulo or Mumbai”

Source: https://research.gavekal.com/article/the-revenge-of-the-ottoman-empire/

My highlights:

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Back in 2017, the value of Chinese exports to Asean economies amounted to 60% of China’s exports to the US. Today, China’s exports to Southeast Asia stand at roughly 120% of China’s exports to the US.

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…from the early 2000s, global economic activity was massively boosted, not just by connecting China to the rest of the world, but also by connecting Chinese cities to each other, with all the associated construction of rail, air, road, telecommunications and power links this involved.

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key income “thresholds’’. For example, if the average income in a country is below US$1,000, nobody owns a television; when incomes move above US$1,000, almost everybody buys one. For smartphones, the level seems to be around US$2,500. For the automobile industry, the critical level seems to be US$10,000 a year. For university education, the level is US$15,000 and above. For financial products like life insurance, brokerage accounts and mutual funds, the level seems to be US$30,000.

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Today, the notion that the world is deglobalizing would seem laughable to anyone living in Dubai, Singapore, São Paulo or Mumbai. Rather, the world is going through a new wave of globalization, which is different from its predecessors. For the first time since Columbus sailed to the Americas (as Churchill said, “Christoper Columbus was the world’s first socialist: he didn’t know where he was going, he didn’t know where he was, and he did it all at taxpayers’ expense”), the world is experiencing a wave of globalization which does not require Western financiers, Western engineers, Western modes of transportation, Western currencies or Western technologies.

Some perhaps surprising numbers around (de)globalization

I’m always on the lookout for information that surprises me…

Source: https://conversableeconomist.com/2023/05/26/globalization-evolves-not-reverses/

Copy and pasted:

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…exports as a share of GDP have levelled off in recent years–while remaining near the all-time high. However, global flows of data and information are dramatically rising

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Indeed, it may be that the US-China conflicts end rearranging the patterns of world trade, with reduced flows between the two countries, but with those international flows being redirected to other countries rather than reduced.

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[T]he world is less globalized than many presume. Most activity that could take place either
within or across national borders is still domestic, not international. Roughly 20% of global economic output is exported (in value-added terms), FDI flows equal just 6% of gross fixed capital formation, about 7% of phone call minutes (including calls over the internet) are international, and only 4% of people live outside of the countries where they were born