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.
Related Subjects
China, technical standardization, and the future of globalization
As the global economy sits at a crossroad between connectivity-driven globalization and strategic decoupling, technical standardization provides a valuable measure of where we are headed.
Climate, Finance, and Geopolitics: Human Self-delusions and the Challenges for Europe
The combination of geopolitical tensions, climate disruption, and the growing role of finance in the economy is taking us into uncharted territory. Until recently, each of these subjects was handled separately, but they are now inextricably linked by two shared characteristics: the gravity of the threat, and the fact that they all lay bare the scale of human self-delusions.
The South versus the West?
In 2023, forums that amplify the voice of the “Global South” have proliferated and grown louder. As contradictory and divided as they may be, these forums (BRICS+, Shanghai Cooperation Organization (SCO), G20, the Group of 77, the European Silk Road Summit…) attest to the emergence of new power relations, and especially new directions in foreign policy, with states rejecting alignment with the dominant powers of the past in favor of putting their own interests first. A new world is taking shape, with changeable, still uncertain, contours.
Impossible Decoupling, Improbable Cooperation: Economic Interdependencies in the Face of Power Rivalries
Export restrictions, economic and financial sanctions, politicization of monetary and financial choices, screening of inward and outward foreign direct investments, exceptional customs duties, and state interventions in sectors deemed strategic: the political vise is tightening around international economic and financial relations.
Racing to the Moon: China's Lunar exploration program in competition with the United States
A new Cold War-style race to the moon seems to be in the making. The People’s Republic of China and the United States are both investing in moon exploration with manned lunar scientific stations as the ultimate goal.
Towards a New European Trade Strategy in Times of Geopolitical Upheaval: The German Perspective
As one of the most successful trading blocs, the EU sees itself confronted with the erosion of the global rules-based trading system and trade becoming increasingly weaponized.
EU-Mercosur: An Unsolvable Trilemma Between Competition Rules, Normative Ambitions and Supply Chain Diversification
The EU-Mercosur trade deal was believed to be heading toward the finish. The election of Luiz Inácio Lula da Silva as the president of Brazil, as successor to the right-wing populist Jair Bolsonaro, and the Spanish presidency of the European Union (EU), raised hopes for its conclusion. But the reservations expressed by several EU member states and some Latin American countries have dashed hopes.
The EU, the Indo-Pacific and the US-led IPEF: Which Way Forward?
The paper provides a European Union (EU) perspective on the Indo-Pacific Economic Framework (IPEF).
Fiscal Policy in France and Germany: Insurmountable Differences?
The state of public finances in France and Germany is often compared. Germany is considered a model of rigor, through its ability to contain its deficits and generate surpluses, particularly between 2012 and 2019, thanks to the introduction into its constitution of a debt brake mechanism.
Between Inertia and Openness. Germany Reforms Its Labor Immigration System
With its new Skilled Immigration Act (Fachkräfteeinwanderungsgesetz) of 23 June 2023, Germany aims to become the country with "the most modern immigration law in Europe". A new points system and new entry rules for experienced workers having a degree from their home country demonstrate the willingness of the German government to open up its labor market to third-country nationals. While immigration law was already the subject of a previous reform in 2020, the new law is a real paradigm shift in Germany’s migration policy.
European and Japanese Soft Power Signal Renewed Influence of G7
The G7 summit in Hiroshima showcased a new international order in the making: in a world where security is indivisible, the priority should be to uphold a collectively shaped rules-based order and find a modus vivendi with China. The G7 can work toward this by taking into account the diverse perspectives of industrialized countries and the Global South, which prioritizes multi-alignment and autonomy. Japan and Europe played a critical role in this process.
Balancing Security and Innovation: Opposition's View on Turkey's Digital Policies
The upcoming presidential and parliamentary elections in Turkey on May 14, 2023, are expected to be closely contested. Polls suggest that the ruling AK Party-led People’s Alliance will lose its majority in parliament, resulting in a hung lower house.
Reshuffling Value Chains - South Korea as a Case Study
Despite all the talks about the reshuffling of value-chains and the trend to a form of industrial “Desinicization” (or decoupling/disengagement from China), the example of South Korea does not vindicate such assertions.
South Korea and IPEF: Rationale, Objectives and the Implications for Partners and Neighbors
As a key manufacturer of high-end technology components critical to the sustainability of the Fourth Industrial Revolution, South Korea is essential in any effort to rebuild a resilient global supply chain but also to the promotion of a clean economy. South Korea can thus contribute to two of the pillars of IPEF (Indo-Pacific Economic Framework), specially to pillars II and III (supply-chain resilience and a clean economy).
Whither China After 10 Years of Economic Policies Guided by Xi?
As the 20th national congress of the Chinese Communist Party (CCP) draws closer, this is an opportune moment to appraise China’s economic achievements over the past decade under President Xi Jinping’s guidance and to identify the challenges the country will have to address during the next five years.
Fishing for Chips: Assessing the EU Chips Act
China, the United States, and the European Union (EU) are currently developing strategies for semiconductors aimed at financing R&D and the installation of new factories on their territories, in particular through subsidies. The EU Chips Act, announced in February 2022, represents a real break in Europe's industrial policy.
The Sino-Lithuanian Crisis: Going beyond the Taiwanese Representative Office Issue
The year 2021 marked the 30th anniversary of the establishment of diplomatic relations between China and Lithuania. Instead of commemorative events and customary lofty rhetoric, the bilateral relationship rapidly plunged to a level rarely seen in either country’s foreign policies since the end of the Cold War.
Korea-EU Direct Investment Links: The Neglected Facet of a Tight Partnership
Despite their difference in size, Korea and the EU have developed over time a strong and deep relation through direct investment flows. Germany dominates the relationship, but there remains ample room for the other EU member-states to further develop their relations with Korea.
Strengthening Sovereignty in the Era of Global Value Chains
How to reduce the vulnerabilities induced by these global value chains to be more independent, while taking into account the reality of these productive processes which precisely generate interdependencies?
European Economic Governance: Past Errors and Future Promises
The eurozone crisis marked a real failure of European Union (EU) policy, which led to mediocre economic performance and the erosion of its political legitimacy among the populations of member states.
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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 2025, Ifri supports more than 80 French and foreign companies and organizations.
Related centers and programs
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.