March 5, 2026
The U.S. and China, while commercially interdependent as the world’s two largest economies, are locked in a high-stakes technological rivalry. The nations have spent the last two decades economically intertwined but are in the process of decoupling as their national interests are increasingly less aligned. The competition for industrial sovereignty has only heightened with the emergence of generative artificial intelligence (GenAI). GenAI has catalyzed a race for AI supremacy given the long-term economic and military implications. As globalization trends wane, corporations and investors must prepare for a bifurcated world.