Face the demands posed by the current global economic crisis is a task that the European Union should be equipped to handle.
In the dynamic world of international business, understanding the role of geopolitics is crucial. This is particularly true for companies in Lombardy, as highlighted in the 2025 Report on Internationalization by Confindustria Lombardia [1]. Prepared in collaboration with the Centro Studi Assolombarda, this report delves into the influence of political and economic shifts on the strategies of Lombard companies in the global economy.
The report sheds light on the complex relationship between the United States and China, two major economic and strategic actors whose policies significantly shape the global economic landscape. The U.S., in particular, is portrayed as a critical player, with its relations with China directly impacting the internationalization approaches of European businesses, including those in Italy.
The U.S.-China dynamic is a central geopolitical factor influencing international business strategies in 2025. Companies must navigate this rivalrous relationship, balancing opportunities and risks arising from U.S.-China competition [1].
The system governing the global economy, conceived at Bretton Woods in 1944, is a tributary mechanism. The United States, as the issuer of debt at will, acts as the final buyer of the world. Part of the dollars generated in this system returns to the U.S. in the form of purchases of an increasingly large federal debt. Exporters of hydrocarbons and Asian exporters park their profits in dollars, contributing to this tributary order [1].
China, with its unprecedented productive capacity, dirigist capitalism, political primacy, strict controls on the exchange rate, maritime power, obsession with manufacturing primacy, and mercantilist policies, is a significant player in this global economic landscape [1]. However, the report also suggests that China could potentially collapse the system, having deployed an arsenal capable of subverting it in little more than thirty years [1].
The current European weakness, according to the report, derives from the structure of its integration. This includes a currency without a state, coexistence of countries with divergent productive apparatuses and security priorities, and a single market designed to favor tax competition at the expense of industrial policy [1].
The report also addresses the uncertainty surrounding the conduct of the United States under Donald Trump. The Trump administration's rejection of the system it created after World War II adds to the complexity of the global economic landscape [1].
The report is a 3-minute read, offering valuable insights for businesses seeking to navigate the complexities of the global economy. It underscores the need for industrial policies worthy of the times, as geopolitical shifts and economic dynamics continue to reshape the international business landscape.
References: [1] Confindustria Lombardia. (2025). 2025 Report on Internationalization. Retrieved from https://www.confindustrialombardia.it/en/news/2025-report-on-internationalisation-by-confindustria-lombardia/
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- The intricate relationship between the United States and China, as highlighted in the 2025 Report on Internationalization by Confindustria Lombardia, significantly influences the strategy of international businesses, including those in Europe.
- The report suggests that China, with its unique economic, political, and industrial characteristics, could potentially destabilize the global economic system that was conceived at Bretton Woods in 1944, adding to the complexity businesses face in navigating the international market.
