In the 1990s, China became the world’s manufacturing powerhouse. After China joined the World Trade Organization in 2001, the growth of global GDP accelerated further. This momentum came to an end in 2008 with the global financial crisis.
The last years have been marked by protectionist tendencies, nationalism, high inflation and (trade) wars. In China, the wage advantages have meanwhile eroded. At the same time, it has become one of the most important consumer markets in the world.
After supply chains were disrupted during the pandemic, many companies have moved from offshoring to nearshoring. To diversify their risk, companies now rely on 2 or 3 suppliers on different continents.
Even though trade in goods has stagnated since 2008, the service sector will further grow global GDP. Digital transformation is the driver of today’s phase of globalization.
