In the financial world, the focus on geopolitics is growing, even though political factors have always shaped the economy. The Cold War and the oil embargoes of the 1970s demonstrate how international politics can transform the world market structure. Today, banking and corporate leaders recognize politics as a key business driver rather than just a backdrop.
The concept of geoeconomics, introduced in the 1990s, describes how states use economic instruments to achieve political goals. Typical tools include tariffs, resource control, purchasing strategic assets, and trade restrictions.
Donald Trump and his team actively used economic pressure—tariffs and other barriers—to advance political goals. In response, China has increased its role in global trade and uses strategies to control key technologies and resources.
This shift from maximally open markets toward greater protectionism and supporting national producers marks a significant change in economic policy among global leaders. The role of the state has evolved through different phases: from active intervention after world wars and the Great Depression, to economic liberalism in the 1980s, and now again toward more regulation.
The market and the state remain deeply interdependent. State support for strategic sectors, such as US investment in green energy, is becoming a major trend. The main challenge for the global economy now is balancing competition, national security, and international stability.
