External Affairs Minister S Jaishankar on Saturday emphasized that global politics is experiencing significant transformation, with nations today balancing between the US and China as India develops new trade partnerships and connectivity initiatives to adapt to this evolving landscape and strengthen its global position.
Following his receipt of an Honorary Doctorate at IIM Calcutta, Jaishankar stated the world has entered an era where political factors increasingly supersede economic considerations, with decisions now influenced by ownership and security concerns. While globalization persists, he noted, strong opposing forces are simultaneously emerging.
“The United States, long the underwriter of the contemporary system, has set radically new terms of engagement. Not just that, it is doing so by dealing with countries on a one-on-one basis rather than through regimes. China has long played by its own rules and is now doing so even more. In the ensuing scenario, other nations are unclear on whether their attention should be on the visible competition or the trade-offs and understandings that punctuate it,” he stated.
Jaishankar added that nations worldwide are responding to globalization pressures through comprehensive hedging strategies. “Even as it engages the United States and China directly, choices are avoided where feasible and choices are made when beneficial. Simultaneously, other options between themselves are explored with greater urgency,” he explained.
Shifting Global Landscape
Addressing wider geopolitical developments, Jaishankar observed: “Europe and Asia are reassessing their respective strategic predicaments. The very landscape of the Middle East has undergone a transformation. The importance of partnering Africa’s growth is more widely recognised, and all distances become less relevant. New opportunities are more visualised in Latin America”.
Emphasizing dramatic global changes over the last decade, he said: “A third of global production currently takes place in China. This has put the spotlight on the resilience and reliability of supply chains. Conflicts and climate events have added to the possibility of their disruption”.
He highlighted changing global energy patterns: the US has transitioned from major importer to significant exporter of fossil fuels, while China now leads the renewable energy sector. Supply-side risks, he explained, are now intensified by demand-side uncertainty.
Jaishankar also noted that tariffs have increased market volatility, while extensive sanctions use, asset seizures, and blockchain technology’s expanding role constitute “new realities” reshaping international trade.
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