Why geopolitics matters to every economy

US-China relations will have effects on supply chains, currencies and more.

Navigating Geopolitical Uncertainty WEOY 2019

With Brexit, global-trade conflicts and shifting state alliances today, geopolitical volatility is something nearly all businesses must contend with. For the first time in 100 years, a major economy — China — is overtaking another — the US — in terms of growth. The relationship of these powerhouses, along with major changes underway in South America and Africa, will affect everything from supply chains to currency. 

“Geopolitics is no longer for emerging markets; it affects every economy,” says EY Geostrategic Business Leader Jonathan Shames. Panelists also underscored the importance of seeking partnerships with governments to help shape the conversation. “There should be more exchange between politicians, who regulate, and businesses, who innovate,” says Silvana Koch-Mehrin, President of Women Political Leaders.

The way the US chooses to work with China will have a major effect on economies. “The US and China together is going to be the defining bilateral relationship,” says Kevin Kajiwara, Co-President of Teneo Intelligence.