"Fortune 500 companies are facing a reckoning, as the traditional playbook of scale, efficiency, and seamless global integration falters as the world drifts away from globalization. There's "incredibly high stakes" on the geopolitical front heading into 2026, James Crabtree, distinguished visiting fellow on the European Council on Foreign Relations, said on Monday during the Fortune Innovation Forum in Kuala Lumpur, Malaysia. Despite the "shaky truce" between U.S. President Donald Trump and China President Xi Jinping agreed last month, the landscape is still littered with "unexploded ordinance," he warned."
"The China-U.S. rivalry creates both opportunities and risks for Southeast Asia. The region has long tried to stay relatively neutral in superpower conflict, yet worsening tensions between Washington and Beijing could lead to pressure to pick a side. But "it's not about making a choice, it's about navigating the opportunities," said Dato' Siobhan Das, chief executive officer of the American Malaysian Chamber of Commerce. While Southeast Asia has long succeeded by offering a growth-friendly ecosystem for multinational companies, the region must cultivate new competitive advantages to meet shifting global dynamics."
"Take Malaysia: panelists pointed to Prime Minister Anwar Ibrahim's recent trade engagement with the U.S. as an example of how middle economies can stay nimble and relevant.During his meeting with Trump, Anwar secured tariff relief on key exports and bolstered diplomatic ties with Washington. Taking advantage of the face-to-face meeting, Anwar secured tariff relief on key exports and bolstered diplomatic ties. Diversification is another tool that countries can use, Das noted, pointing to Malaysia's new focus on emerging markets in Africa, South America and the Middle East. But diversification has limits, she warned. "In the high-tech space, there are not that many countries that you're going to be exporting to.""
Deglobalization undermines the traditional corporate playbook of scale, efficiency, and integrated global supply chains. Escalating geopolitical tensions between the U.S. and China raise very high stakes heading into 2026. The fragile truce between Washington and Beijing leaves significant unresolved risks and potential shocks. China–U.S. rivalry presents both opportunities and risks for Southeast Asia and could pressure countries to choose sides. Southeast Asian economies must navigate opportunities, cultivate new competitive advantages, and preserve growth-friendly environments for multinational companies. Malaysia leveraged bilateral engagement with the U.S. to secure tariff relief on key exports and bolster diplomatic ties. Diversification toward Africa, South America, and the Middle East offers options but carries limits in high-tech export markets.
Read at Fortune
Unable to calculate read time
Collection
[
|
...
]