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
The Eurozone’s Vulnerabilities and Risks
The war in Ukraine has brought to light the European Union’s vulnerabilities.
The German Government's Support Plan for Households and Businesses: How to Compensate for the Double Energy and Economic Shock?
In response to Russia's illegal attack on Ukraine, EU member states have issued a series of economic sanctions against Russia. This also includes moratoria on certain products, e.g., in the energy sector.
The Balkans: A New Great Game?
What political spaces make up the Old Continent? This question is at the heart of the Ukrainian conflict.
Europe-US resolve on China proves short-lived ahead of key meetings in Beijing and Washington
European Green Deal, Three Years Later
The European Green Deal (EGD) is the single most defining policy initiative of the Von der Leyen Commission. Since its publication in December 2019, it has become the European Union’s (EU) new raison d’être.
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.
The European Union Industrial Strategy: Reconciling Competition and Geoeconomic Challenges
The EU’s basic assumptions, on which it grounds its economic and trade power, are being steadily cast into doubt. The EU’s main trade partners, the US and China, increasingly set their sights on securing their supply chains, which may further a potential decoupling.
New Paradigm for Electrification in Sub-Saharan Africa: How Are Decentralized Hybrid Systems Changing the Game?
After several decades of reforms, the situation in centralized power sectors has hardly changed. The sub-Saharan power sector remains underdeveloped, and power sectors are experiencing significant financial difficulties that have been further exacerbated first by the effects of the pandemic and then the war in Ukraine.
The German Industrial Power in Danger: The Double Shock of Energy Transition and Geopolitical Risk
The German manufacturing industry at the heart of the German economic activity has been confronted in the past years with conjunctural shocks, which question its existence on the German territory: the energy transition which hinders it in the short term to resort to fossile energy from Germany and nuclear energy; a questioning of fossile energy imports from Russia which keeps production sites of fossile energy and nuclear energy in Germany; the currently small capacity of renewable energy to satisfy the important energy needs of the manufacturing industry and the putting into place of alternatives to the importation of energy resources.
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.
Five Years after China’s Plastic Import Ban: Have Europeans Taken Responsibility?
After the 2017 Chinese waste import ban, the international and European Union (EU) legislative framework on waste exports has been revised.
Support and conflict: transatlantic agricultural trade since 1945
Agriculture is an area of strategic importance, where relations between the United States and the European Union (EU) vary from solidarity to competition.
Lebanese Banking Crisis: The Systemic Workings of a Wreck
Japan's upgraded economic security strategy
An interview with Kazuto SUZUKI, Professor, Graduate School of Public Policy, University of Tokyo.
The EU’s Carbon Border Adjustment Mechanism: A Piece in the Industry Decarbonization Puzzle
The Carbon Border Adjustment Mechanism (CBAM) is a first step toward reconciling the European Union (EU)’s climate and trade interests. However, a complementary set of domestic and external policies will be needed to drive the decarbonization of European and global energy-intensive industries.
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.
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.
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.
Preparing for 2050: From “Foresight” to “Grand Strategy”
China and the United States both have a “grand strategy”: Beijing aspires to be the world’s leading power in 2049, while Washington plans to remain primus inter pares.
The Biden administration in turmoil (video replay)
Celebrating its 20th edition, Ifri's Annual Conference on the United States convened a first panel on national politics and a second on the evolution of U.S. trade. An exchange between Thierry de Montbrial and Henry Kissinger, 56th Secretary of State, concluded the day. Videos of all interventions are below.
National Perspectives on Europe's De-risking from China
The concept of “de-risking” has become a significant focus for the European Union (EU) in managing its relations with China since first proposed by European Commission President Ursula von der Leyen in March 2023. However, the interpretation and policy responses to de-risking vary across Europe, reflecting diverse national perspectives.
European Union–Republic of Korea Cooperation on Economic Security: Opportunities, Limits and Challenges
This piece is a revised version of a paper presented at the conference on “New Convergences in EU-ROK Economic Security Relations”, organised in Rome on 30 January 2024 by the Istituto Affari Internazionali (IAI).
Macron’s China Policy: Dropping Illusions and Bringing Back Realpolitik
One may regret that France has not upgraded its China policy sooner, but it seems that the French president is now clear-eyed that it is not enough to only have a good relationship with Beijing, it is also necessary to reinstate the balance of power.
Why Chinese Fintechs Have Failed to Reshuffle International Finance
New Chinese financial technologies, including unparalleled electronic payment systems, have so far failed to threaten U.S. financial dominance.
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.
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.
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.
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).
Is International Climate Finance Unfair and Inefficient?
Finance is arguably the most sensitive climate negotiation topic. Different studies have shown that rich countries emit the majority of greenhouse gas (GHG) emissions, while the climate footprint of the poorest countries is much more limited.
IRA: Towards Clean Hydrogen Leadership in the U.S.
Although late in adopting clean hydrogen (H2) and defining a national strategy–a draft was presented by the Department of Energy (DOE) in September 2022–, the United States (US) has strongly reinforced its support to clean hydrogen with the passage of the Inflation Reduction Act (IRA) in August 2022.
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.
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.