Economy
The economy is an essential attribute of power and a major component of international relations. While geopolitical tensions are on the rise, economic interdependence remains strong.
China’s EV Rise and the Strategic Challenge for Japan’s Automotive Industry
China’s rapid expansion in electric vehicle production is reshaping global automotive competition for both European and Japanese automakers. Japan —a pioneer in hybrid vehicles— is struggling to translate this leadership into battery electric vehicles (BEVs), as Chinese manufacturers rapidly scale production and exports. At the same time, China’s dominance in battery manufacturing and critical mineral processing exposes upstream vulnerabilities for Japan’s automotive industry. Together, these developments create a dual challenge: intensifying downstream competition in electric vehicle (EV) markets and continued dependence on Chinese-controlled supply chains.
Entry into force of the EU-Mercosur agreement: last act of an endless drama for Germany?
At the World Economic Forum in Davos on January 20, 2026, Ursula von der Leyen, the President of the European Commission, stated that "geopolitical shocks can and must serve as opportunity for Europe".
Crisis in the Strait of Hormuz. A Stress Test for Taiwan with Global Implications
The large-scale military operation carried out by the United States (US) and Israel against Iran triggered an Iranian retaliation that resulted in the partial destruction of natural gas liquefaction infrastructure and severe disruption of maritime traffic in the Strait of Hormuz. The economies of East Asia—South Korea, Japan, and Taiwan in particular—are highly exposed to this crisis due to their reliance on liquefied natural gas (LNG) imports for electricity generation.
Global imbalances, industrial policies, and the challenge of surging Chinese trade surpluses
The analysis of global imbalances faces a paradox: while the analytical focus has for decades been on the sustainability of current account deficits, out of concerns about their financial consequences, international political tensions stem mainly from enduring trade surpluses and their industrial impacts. Beyond President Trump’s outbursts, fears about the consequences of China’s trade surpluses are increasingly widespread.
Can Interdependence Persist in Tense Times? Insights from the 2nd Paris Geoeconomic Dialogue
Ifri’s 2nd Paris Geoeconomic Dialogue brought together in November 2025 experts, academics, and decision-makers around six themes relating to the prospects for interdependence in an increasingly tense international environment.
Digital Revolution, Economic Upheaval
The digital revolution is profoundly shaking up the economy, with the impact felt well beyond the digital sector itself. Indeed, it is transforming the very concept of value creation. Artificial intelligence represents a new phase that requires a colossal investment in physical infrastructure like data centers. Europe failed to grasp the scale of these changes in time, but it does have certain advantages.
Official Development Assistance in the Age of Deglobalization
Official development assistance has collapsed since 2023, both in Europe and in the United States. This decline has affected both developing and industrialized countries. Under fire in the Global North and South, the goals and methods of development assistance must be redefined if it is to adapt to an international landscape in which the principal actors—the United States, the European Union, China, the Arab countries—are adopting new stances.
From Trump to Xi Jinping: Globalization's Great Rupture
The second Trump administration’s trade policy represents a rupture with the United States’ international commitments and a seismic shock for the multilateral trade system. Its destabilizing impact has been exacerbated by China’s disproportionate trade surplus, which has doubled since the 2020 pandemic. We are entering a new era marked by the erosion of norms and their replacement by a more transactional logic. For Europe, the challenge is enormous.
The Global Economy: Caught in the Storm / Politique étrangère, Vol. 91, No. 1, 2026
The global economy has become the primary arena for the clash of power ambitions in a world where understanding, coordination, and concerted multilateralism seem to have been permanently marginalized. In this fragmented landscape, how will American and Chinese strategies interact? Will the European Union manage to break out of its decades-old framework in order to face new competition? And will it be able, like others, to integrate the announced shift from a production economy to a digital, information economy? And what role will financial institutions, and central banks in particular, play in this transitioning international economy?
Central Banks: Challenges and Tools in Geopolitical Rivalries
Central banks have become major strategic players in international economic balances. Faced with systemic crises (2008, Covid-19), the major central banks have developed unprecedented coordination of their interventions, fostering the emergence of the “Jackson Hole consensus.”
China’s EV Rise and the Strategic Challenge for Japan’s Automotive Industry
China’s rapid expansion in electric vehicle production is reshaping global automotive competition for both European and Japanese automakers. Japan —a pioneer in hybrid vehicles— is struggling to translate this leadership into battery electric vehicles (BEVs), as Chinese manufacturers rapidly scale production and exports. At the same time, China’s dominance in battery manufacturing and critical mineral processing exposes upstream vulnerabilities for Japan’s automotive industry. Together, these developments create a dual challenge: intensifying downstream competition in electric vehicle (EV) markets and continued dependence on Chinese-controlled supply chains.
Entry into force of the EU-Mercosur agreement: last act of an endless drama for Germany?
At the World Economic Forum in Davos on January 20, 2026, Ursula von der Leyen, the President of the European Commission, stated that "geopolitical shocks can and must serve as opportunity for Europe".
Crisis in the Strait of Hormuz. A Stress Test for Taiwan with Global Implications
The large-scale military operation carried out by the United States (US) and Israel against Iran triggered an Iranian retaliation that resulted in the partial destruction of natural gas liquefaction infrastructure and severe disruption of maritime traffic in the Strait of Hormuz. The economies of East Asia—South Korea, Japan, and Taiwan in particular—are highly exposed to this crisis due to their reliance on liquefied natural gas (LNG) imports for electricity generation.
Global imbalances, industrial policies, and the challenge of surging Chinese trade surpluses
The analysis of global imbalances faces a paradox: while the analytical focus has for decades been on the sustainability of current account deficits, out of concerns about their financial consequences, international political tensions stem mainly from enduring trade surpluses and their industrial impacts. Beyond President Trump’s outbursts, fears about the consequences of China’s trade surpluses are increasingly widespread.
Can Interdependence Persist in Tense Times? Insights from the 2nd Paris Geoeconomic Dialogue
Ifri’s 2nd Paris Geoeconomic Dialogue brought together in November 2025 experts, academics, and decision-makers around six themes relating to the prospects for interdependence in an increasingly tense international environment.
Digital Revolution, Economic Upheaval
The digital revolution is profoundly shaking up the economy, with the impact felt well beyond the digital sector itself. Indeed, it is transforming the very concept of value creation. Artificial intelligence represents a new phase that requires a colossal investment in physical infrastructure like data centers. Europe failed to grasp the scale of these changes in time, but it does have certain advantages.
The Global Economy: Caught in the Storm / Politique étrangère, Vol. 91, No. 1, 2026
The global economy has become the primary arena for the clash of power ambitions in a world where understanding, coordination, and concerted multilateralism seem to have been permanently marginalized. In this fragmented landscape, how will American and Chinese strategies interact? Will the European Union manage to break out of its decades-old framework in order to face new competition? And will it be able, like others, to integrate the announced shift from a production economy to a digital, information economy? And what role will financial institutions, and central banks in particular, play in this transitioning international economy?
Official Development Assistance in the Age of Deglobalization
Official development assistance has collapsed since 2023, both in Europe and in the United States. This decline has affected both developing and industrialized countries. Under fire in the Global North and South, the goals and methods of development assistance must be redefined if it is to adapt to an international landscape in which the principal actors—the United States, the European Union, China, the Arab countries—are adopting new stances.
From Trump to Xi Jinping: Globalization's Great Rupture
The second Trump administration’s trade policy represents a rupture with the United States’ international commitments and a seismic shock for the multilateral trade system. Its destabilizing impact has been exacerbated by China’s disproportionate trade surplus, which has doubled since the 2020 pandemic. We are entering a new era marked by the erosion of norms and their replacement by a more transactional logic. For Europe, the challenge is enormous.
Central Banks: Challenges and Tools in Geopolitical Rivalries
Central banks have become major strategic players in international economic balances. Faced with systemic crises (2008, Covid-19), the major central banks have developed unprecedented coordination of their interventions, fostering the emergence of the “Jackson Hole consensus.”
Japan seeks French backing as Macron begins Asia trip in Iran war’s shadow
Emmanuel Macron touched down in Tokyo on Tuesday with a packed agenda and a receptive audience in a Japanese government anxious about a choked oil route and looking for support amid its diplomatic falling-out with Beijing.
Replay - Conference with Chris Wright, Secretary, U.S. Department of Energy
Welcomed at the French Institute of International Relations (Ifri), Chris Wright outlined his vision of American energy policy built around two core axes: the human reality of energy access, and a data-driven approach. For the Secretary, energy is the foundation of prosperity, health, and longer life expectancy on a global scale. His doctrine rests on an ambition of American "energy dominance" — not merely independence, but the capacity to produce at scale in order to lower domestic costs, reindustrialize the country, and support U.S. allies.
U.S. tariffs take center stage but China and the EU are quietly clashing
The U.S. tariff saga has stolen global spotlight from trade tensions between China and the European Union, which are now heating up.
“Although mining is a long-term business, very few companies do prospective studies”
As global demand for critical minerals accelerates, Central Africa finds itself once again at the heart of an extractive race—this time driven by the energy transition. Thierry Vircoulon, Associate Research Fellow at Ifri's Sub-Saharan Africa Center, and Coordinator of its Observatory of Central and Southern Africa, shares a sharp and sobering perspective. Speaking ahead of the ESSEC Institute for Geopolitics & Business webinar “Securing Critical Minerals” (2 July), he explores the paradoxes of resource governance, the rise of China, and why “clean energy” still runs on dirty politics. A must-read for those navigating the fault lines of global supply chains.
Thomas Gomart, director of the French Institute of International Relations: 'Trump reasserts the US' strategic centrality'
By bombing Iran alongside Israel, Donald Trump has performed a show of force aimed at China and Russia, explains the director of the French Institute of International Relations in an interview.
quoted by Leila Abboud in the Financial Times
Emmanuel Macron touts France as ‘reliable’ partner for south-east Asia
French President Emmanuel Macron has begun a six-day visit to Vietnam, Indonesia and Singapore in which he will tout France and Europe as trade and security partners of choice for a region buffeted by tensions between China and the US.
How Will the Trump Presidency Change EU-China Relations?
Over the past few years, European countries have started to line up with the United States on China policy. But now, as Donald Trump destroys the trust European countries had in America, China is stepping up, promising stability and consistency.
China-EU ties reach half century: 4 things to know
Will Trump 2.0 push the two combative sides to find common ground?
Trump-battered Europe eyes China with launch of diplomatic flurry to Beijing
EU officials and European national representatives are on overlapping visits but each will be asking for something slightly different
The United States: Internal and External Perspectives
Plenary session of the 2026 World Policy Conference dedicated to analyzing the continuities and discontinuities of American policy under the presidency of Donald Trump.
Replay - Conference with Chris Wright, Secretary, U.S. Department of Energy
Welcomed at the French Institute of International Relations (Ifri), Chris Wright outlined his vision of American energy policy built around two core axes: the human reality of energy access, and a data-driven approach. For the Secretary, energy is the foundation of prosperity, health, and longer life expectancy on a global scale. His doctrine rests on an ambition of American "energy dominance" — not merely independence, but the capacity to produce at scale in order to lower domestic costs, reindustrialize the country, and support U.S. allies.
Whatever it takes? EU in race to shore up sovereignty
Can Europe man the ramparts on its own? As the US war secretary snubbed a NATO defence ministers' meeting in Brussels, EU leaders converged on the 16th-century Alden Biesen castle in Belgium's Limburg province to answer former Italian prime minister Mario Draghi's call for a "big bazooka" approach to reform and competitiveness.
AI showcase pays off for France, but US tech scepticism endures
France is staking its claim as an AI powerhouse. At the AI Action Summit in Paris this week, global leaders, tech innovators, and policymakers converged to chart the future of artificial intelligence - backed by major investments and bold ambitions for Europe’s leadership in the field. RFI breaks down the key takeaways.
How do maritime companies cooperate with the navies? An interview with Evan FUERY, EQUINOR
On the sidelines of the Paris Naval Conference 2025, on February 4, 2025, organized by Ifri and the French Navy (Marine nationale), Evan FUERY, Senior Vice-President for Corporate Security and Crisis Management, EQUINOR, shares insights on how maritime companies collaborate with the navies to secure maritime economy.
How do maritime companies cooperate with the navies? An interview with Christine Cabau (CMA-CGM)
On the sidelines of the Paris Naval Conference 2025, on February 4, 2025, organized by Ifri and the French Navy (Marine nationale), Christine Cabau, Executive Vice-President in Charge of Assets and Operations, CMA-CGM, shares insights on how maritime companies collaborate with the navies to secure maritime economy.
How do maritime companies cooperate with the navies? An interview with Simon Bergulf, MÆRSK
On the sidelines of the Paris Naval Conference 2025, on February 4, 2025, organized by Ifri and the French Navy (Marine nationale), Simon BERGULF, Group Representative Europe Public and Regulatory Affairs, Head of Energy transition and Operations, Maersk, shares insights on how maritime companies collaborate with the navies to secure maritime economy.
De-globalization or Re-globalization? (World Policy Conference 2024 - Plenary Session)
Saturday, December 14, 2024 - 17th edition of the World Policy Conference in Abu Dhabi, United Arab Emirates. Plenary session 3: De-globalization or Re-globalization?
Replay - The European Union in Competition with the United States and China. How to Balance Free Trade, Competitiveness and Economic Security?
Video replay from Ifri's conference, on December 3, 2024. As the geopolitical context has changed, so has the approach to international economic relations and the rules-based multilateral framework. Covid and Russia’s war against Ukraine have exposed the risks of extended supply chains and of having become dependent on a single supplier.
Global Financial Shifts: The Impact of Dollar Sanctions and Frozen Russian Assets
An interview with Brad Setser, Whitney Shepardson Senior Fellow (Council on Foreign Relations) led at Ifri on September 24, 2024.
Dollar-based financial sanctions have been increasing, particularly since the beginning of the century. Is this phenomenon likely to significantly alter the international role of the dollar?
There is a lot of controversy about the in which way frozen assets from Russia’s central bank should be treated, regarding both the assets themselves and the associated revenues. What consequences do you foresee for the international financial system?
2024 Election: What's Next for U.S. International Economic Policy?
An interview with Emily Blanchard, Tuck School of Business at Dartmouth College and CEPR.
How does she see the prospects for U.S. international economic policy, depending on who wins the election in November 2024?
Japan's upgraded economic security strategy
An interview with Kazuto SUZUKI, Professor, Graduate School of Public Policy, University of Tokyo.
The CPTPP and UK’s accession: What global implications?
The UK is the first State which formally applied to join the CPTPP. Its bid was accepted in early June 2021.
What are the impact of the COVID-19 crisis on Japan's economic security?
In this interview, Shin Oya, Senior Consulting Fellow, Asia Pacific Initiative and Chief Representative for Strategic Research, JBIC looks at COVID-19's impact on economic security in Japan.
Rethinking Economic Security in the (Post) COVID-19 World
The COVID-19 crisis has highlighted the risks of an excessive dependence on one single economic partner and has prompted a rethinking of what economic security really entails.
What is Korea getting at through its New Southern Policy ?
In this interview, Wongi Choe, head of Center for ASEAN–India Studies at the Korea National Diplomatic Academy (KNDA) looks at the rationale for and the content of Korea's New Southern Policy.
Technology and Economics: Techno-nationalism VS Techno-globalism in East Asia
Trade, Investments, Technology, Climate Change, Human Rights: How should the EU Deal with China?
Ifri, the Austro-French Centre for Rapprochement in Europe and Konrad Adenauer Foundation Multilateral Dialogue organized a videoconference called "Trade, Investments, Technology, Climate Change, Human Rights: How should the EU Deal with China? " on October 27, 2020.
The Changing Political Agenda and Role of Think Tanks in the Next Decade. Video
A debate in the framework of the 12th regional conference of Council of Councils (CoC) in Paris between Thierry de Montbrial, Executive Chairman of Ifri and Richard N. Haass, President of Council on Foreign Relations (CFR). Moderator: Sophie Pedder, Paris Bureau Chief, The Economist.
Michala MARCUSSEN - Trump: One Year After The Election
Is the American economy doing well? Will the Tax Reform change this? How could the bond markets evolve in 2018?
Karlyn BOWMAN - Trump: One Year After The Election
3 questions to Karlyn BOWMAN, Senior Fellow, American Entreprise Institute
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Ifri, a foundation recognized as being of public utility, relies largely on private donors – companies and individuals – to guarantee its sustainability and intellectual independence. Through their funding, donors help maintain the Institute's position among the world's leading think tanks. By benefiting from an internationally recognized network and expertise, donors refine their understanding of geopolitical risk and its consequences on global politics and the economy. In 2026, Ifri partners with over 90 French and international companies and organizations.
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quoted by Leila Abboud in the Financial Times
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Geoeconomics and Geofinance Initiative
To analyze the impact of power rivalries and tensions on globalization, this initiative combines economic and political expertise. In the face of growing geopolitical risk, the goal is to decipher the dynamics of reconfiguration: protectionist pressures, sanctions, restrictions, industrial policies, and economic security concerns are redefining the rules of international trade. These tensions are also transforming international financial relations by undermining the foundations of trust and reshaping the global monetary system. They raise questions about the role of several key players: sovereign wealth funds, central banks, digital platforms, multilateral institutions, and financial infrastructure operators. In a context of profound disruption, simply refining existing approaches is no longer sufficient. The initiative is designed as a flexible model, drawing on diverse expertise to offer both broad overviews and targeted analyses. It also provides a platform for stakeholders and experts from various backgrounds to debate these issues freely.