JPMorgan named the main theme of 2023

In 2023, the geopolitical split will have huge consequences for the capital market and investment, JPMorgan warned. The bank noted

Decades of globalization has come to an end, and the geopolitical divide will have huge implications for the capital market and investment in 2023. This was stated by the HEAD of institutional portfolio strategy JPMorgan Asset Management Jared Gross, reports BLOOMBERG.

Supply chains, industrial policy, and energy and defense will continue to be affected by the market, he said.

JPMorgan identified three categories: economic globalization, political globalization, and social globalization. Gross noted that it was typical for all three categories that five to seven years ago they "came to a plateau", and recently these trends have been observed to fade.

He pointed out that the “deglobalization” trend began even before the covid-19 pandemic and Russia’s special operation in Ukraine. Gross stressed that this was partly influenced by the policies of the administration of former US President Donald Trump and the policy of the current leader Joe Biden towards CHINA .

Former US President Donald Trump has criticized China for unfair competition and theft of US intellectual property.

Since 2018, Washington has imposed duties on Chinese goods. Some of them were removed in January 2020, when the two countries agreed on a deal obliging Beijing to buy $200 billion worth of agricultural products and other goods from the United States within two years. Washington canceled a planned increase in duties on Chinese phones, toys and laptops.

The deal was called into question due to the actions of the central authorities of China in relation to Hong Kong, after which Trump announced the introduction of additional sanctions against Beijing.

Kostin announced the end of globalization and the Cold War 2.0» Finance

Earlier, Andrei Kostin, Chairman of the Board of VTB Bank, spoke about the end of globalization. “Globalization in its former form is over. The world is likely to be again rigidly divided into “us” and “them”. This is Cold War 2.0,” he wrote in an op-ed for RBC in June.

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In September, businessman Arkady Rotenberg also said at the Eastern Economic Forum that “globalization is over” and that there will be no more unipolar world.

Russian Foreign Minister Sergei Lavrov, in turn, stressed that American-style globalization is over and that RUSSIA is undergoing a reorientation of foreign policy and foreign economic activity. "At the same time, a new system is being built - both financial and logistical," he stressed.

Russian President Vladimir Putin has repeatedly spoken about the unacceptability of a unipolar world system. In July, he said that the model based on "liberal, globalist ideology", which "acquires the features of totalitarianism", is leaving.