Abstract

Beyond Trade: Geo-economics as the New Framework of Global Power Politics

Prof. B. Sudhakar Reddy, Dr. K. Shobha Rani

Volume: 16 Issue: 1 2026

Abstract:

The structure of global power in the twenty-first century is increasingly shaped not by military conflicts but by the strategic use of economic interdependence. Geo-economics—defined as the intentional use of economic tools to achieve geopolitical aims—has become the primary method of statecraft. This paper argues that tools such as trade policies, sanctions, technology controls, and infrastructure investments are no longer neutral market operations but act as instruments of coercion, deterrence, and influence within an evolving hierarchy of power. While globalization in the late twentieth century encouraged deep integration through liberal trade systems and global value chains, recent trends reveal a clear shift toward fragmentation, strategic decoupling, and the weaponization of markets—evident in rising tariffs, financial sanctions, and the creation of exclusive economic blocs. Using official data from the World Trade Organization, International Monetary Fund, World Bank, and national statistical agencies, this study systematically analyzes changing trade and investment patterns alongside shifts in national policies. Through comparative case studies of the United States–China rivalry, Western sanctions against Russia, China’s Belt and Road Initiative, and the European Union’s green industrial strategies, the paper demonstrates how geo-economic tools are employed across different political economies.

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References

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