The writer is president and chief operating officer of Goldman Sachs
Trade tensions between the US and China have de-escalated in recent months. Still, as I speak with corporate leaders and government officials in each country, it is increasingly clear that the economic relationship between the two nations has fundamentally changed. Geopolitics, security and supply chain resilience are now shaping economic decisions in a manner that could be as profound as cost and efficiency once were.
Globalisation is not going away. Comparative advantage will continue to play an important role in shaping trade patterns, and after decades of investment, a substantial decoupling is not practical. But it is no longer sufficient for a trade relationship to be driven solely by lowest-cost production, just-in-time inventory and seamless, direct supply chains.