According to Fortune, Mastercard Chair Merit Janow argues that the world is experiencing “re-globalization rather than massive de-globalization” as countries form regional trade concentrations and “coalitions of the willing.” At the Fortune Global Forum in Riyadh, Janow noted that while trade wars and restrictions are creating uncertainty, trade remains resilient through new regional experiments and closer government-corporate collaboration. This shift requires deeper analysis of what re-globalization actually means for global commerce.
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Understanding the Re-Globalization Phenomenon
The concept of re-globalization represents a fundamental restructuring rather than retreat from international trade. Unlike the broad multilateral frameworks that characterized previous decades, this new phase involves selective, strategic partnerships built around shared economic interests and security concerns. What we’re witnessing is the fragmentation of global supply chains into more resilient regional networks that can better withstand geopolitical shocks. This represents a maturation of globalization rather than its reversal, with companies and governments seeking the benefits of international commerce while mitigating the risks that became apparent during recent disruptions.
Critical Challenges in Regional Realignment
The transition to regional trade concentrations presents significant challenges that the optimistic framing often overlooks. Smaller economies that previously benefited from broad market access now face exclusion from emerging regional blocs, potentially creating new economic dependencies. The requirement for increased government-corporate collaboration, while necessary, raises concerns about the tariff structures becoming tools of industrial policy rather than fair trade mechanisms. Additionally, the infrastructure and regulatory harmonization needed for effective regional integration requires massive investment and political will that many regions may struggle to mobilize, particularly given the democratic decision-making processes that JLL CEO Christian Ulbrich correctly identifies as potentially slowing critical responses.
Corporate Strategy in the New Trade Landscape
For multinational corporations, this shift demands fundamental restructuring of supply chain and market strategies. Companies must now navigate multiple regional regulatory environments rather than operating under consistent global standards. The emphasis on “coalitions of the willing” means corporate leaders need deeper political intelligence and government relations capabilities than ever before. This is particularly challenging for technology companies and manufacturers who must balance efficiency with the resilience that regional concentrations provide. The role of financial intermediaries like Mastercard becomes increasingly critical in facilitating cross-border transactions within these new trade architectures while managing compliance across multiple jurisdictions.
Realistic Assessment of Future Trade Relations
The most immediate test of this re-globalization thesis will be the U.S.-China relationship, where the framework described represents a pragmatic accommodation rather than resolution of fundamental tensions. The suggested 15%-25% tariff range that businesses could “live with” still represents a significant cost increase that will reshape manufacturing decisions for years to come. More importantly, the selective export controls approach requires delicate balancing that may prove unstable as technology competition intensifies. The success of regional concentrations will depend heavily on whether they can achieve the scale economies necessary to compete with established global supply chains while maintaining the flexibility to adapt to rapidly changing geopolitical conditions. What emerges may be less a neat system of regional blocs and more a complex patchwork of overlapping agreements and bilateral arrangements that require sophisticated navigation by all market participants.
