Geopolitical tensions manifest as political rivalries that influence global power dynamics, influencing diplomatic strategies, military engagements, and economic policies. They often reflect historical rivalries that have evolved over time, highlighting the interplay of legacy factors and changing norms in the global context. They also complicate efforts toward global cooperation and highlight the challenges of resolving such tensions.
The most common source of geopolitical tension is energy, as nations prioritize their ability to meet their energy needs and secure access to resources. The race for critical minerals such as lithium and cobalt, necessary to develop renewable energy technologies and electric vehicles, has shaped new arenas of competition and heightened geopolitical risks. Similarly, the growing need to address climate change and the effects of natural disasters is reshaping global energy geopolitics, contributing to increased international instability and conflict.
Another major area of geopolitical tensions is trade, as protectionist measures by one nation can trigger retaliation from others and disrupt global trade flows. The current situation between the United States and China exemplifies this, with the ongoing conflict creating uncertainty for businesses that need to realign their supply chains and mitigate risks from the possibility of retaliatory trade measures.