The end of globalization?

 Epoch Times:

Larry Fink, chief executive of BlackRock, the world’s biggest asset manager, said that the war in Ukraine will put an end to globalization as governments and businesses cut ties with Russia, while warning that a large-scale reorienting of supply chains will be inflationary.

“The Russian invasion of Ukraine has put an end to the globalization we have experienced over the last three decades,” Fink wrote in a March 24 letter to shareholders, in which he noted that the Russian offensive in Ukraine had catalyzed nations to sever financial and business ties with Moscow.

“United in their steadfast commitment to support the Ukrainian people, they launched an ‘economic war’ against Russia,” Fink wrote.

Russia has been hit with crippling sanctions over what it calls a “special military operation” in Ukraine. The measures have targeted Russian banks and wealthy oligarchs, there’s been a closure of airspace to Russian planes, and the export of key technologies has been banned.

The sanctions also include a freeze on around $300 billion of Russia’s central bank hard currency reserves, an unprecedented move that Russian Foreign Minister Sergey Lavrov denounced on March 23 as “theft.”

Fink noted in his letter that capital markets, financial institutions, and companies have gone beyond government-imposed sanctions, moving quickly to terminate longstanding business and investment relationships.

He predicted that Russia’s decoupling from the global economy will prompt governments and companies to re-evaluate their manufacturing and assembly footprints more generally and reconsider their dependency on other nations.

“This may lead companies to onshore or nearshore more of their operations, resulting in a faster pull back from some countries,” Fink wrote.

...

The end of globalization was already underway before the war as Trump recognized the vulnerability it caused America.  It was one of the reasons the left was so apoplectic about Trump's sin in 2016. Trump's policy was to make the US less vulnerable to foreign trade.  While his main focus was on China manufacturing and trade it was mainly about globalization in general.  He wanted to bring manufacturing back to the US to create American jobs.

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