Politicians predictably declare initiatives for domestic production of critical goods like munitions or rare earths when dependencies are exposed. However, these declarations rarely translate into effective action, suggesting we must learn to manage economic entanglement as a form of mutual deterrence rather than wish it away.

The concept of 'weaponized interdependence,' highlighted by China's use of export controls, is driving Asian nations like Japan, India, and South Korea to implement economic security acts. This shifts investment toward domestic supply chains in critical minerals, semiconductors, and defense, creating state-backed opportunities.

China aims for maximum self-sufficiency while simultaneously encouraging foreign economic dependence on its market. This calculated strategy creates powerful geopolitical leverage, as countries like Germany become hesitant to challenge China for fear of damaging their significant commercial interests.

The anxiety driving protectionism in the West stems from seeing other nations catch up, not from an absolute decline in living standards. This psychological fear of losing the top spot undermines national confidence and can trigger a dangerous, self-defeating shift toward isolationism.

The Western belief that free trade would cause authoritarian states like China to liberalize has proven false. Instead, this policy created a powerful manufacturing competitor whose interests diverge from the West's. The current era of deglobalization is an unwinding of this flawed foundational premise of the post-war order.

Blindly outsourcing manufacturing based on "comparative advantage" erodes a nation's knowledge base and creates supply chain choke points. When geopolitical rivals control critical resources like rare earth metals, the economic advantage of globalization transforms into a severe national security risk.

Relying on an adversarial nation like China for manufacturing, especially for critical technologies, places a country in a "horrifyingly weak position." In the event of a war, the inability to produce essential goods is a fatal flaw that renders a nation powerless.

The era of economic-led globalization is over. In the new world order, geopolitical interests are the primary driver of international relations. Economic instruments like tariffs and export restrictions are now used as levers to assert national interests, a fundamental shift from the US-centric view where the economy traditionally took the lead.

Despite being rivals, the US and China are in weak economic positions where each nation is the only one that can meaningfully help the other. The US is the world's consumer, and China is the world's producer, creating a tense but necessary codependency for economic stability.