The Rise of Modern Mercantilism: Reshaping the Global Economic Order

Bridgewater's co-CIO, Greg Jensen, argues in a new research paper that the global economy is shifting from free trade towards a new system of "modern mercantilism." Driven by the rise of China and policy shifts in the US and elsewhere, this system prioritizes state control over the economy, emphasizes trade balances, utilizes industrial policy, and protects national champion companies. This shift will reshape the global economic order, posing risks to countries reliant on trade surpluses and potentially leading to various forms of trade conflict.