Trade turns chilly: Chip embargo symbolizes deeper US-China strains

Is global trade in Cold War 2.0? Whatever you call it, how far China and the West drift apart may depend on finding a new equilibrium between national security concerns and a desire for growth.

In the heady days after the fall of the Soviet Union, globalized trade became an article of faith. The more trade, the better. It not only made nations richer – it also made them less willing to go to war because the economic costs of doing so kept going up.

Over the next three decades, however, doubts began to creep in about this globalization. Some nations made out better than others in a win-win world. Others – such as Iran and North Korea – kept up their militaristic ways, even when sanctions imposed economic costs on their actions. 

Now, many nations are asking the opposite question: Could they be vulnerable from too much trade, especially with countries that don’t share their values or strategic aims? 

This reconsideration of globalization is happening bit by bit, nation by nation, and even company by company. It’s most clearly seen in the gradual drifting apart of China and the West, particularly the United States. And there are no easy answers because, even as trade ties fray, the benefits of globalization remain strong. Trade continues to fatten consumer pocketbooks, boost corporate profits, and bring down prices on thousands of goods from toys to solar panels.