US-China tensions fragmenting trade and investment, IMF finds
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Trade flows between a US-aligned group and another linked more closely to China have declined by about 12% more than trade between countries within the same bloc since Russia’s full-scale invasion of Ukraine in 2022. Foreign direct investment projects fell by around 20% more between blocs than within blocs over the same period. The global economy is showing signs of dividing between US- and China-centered blocs, though the dynamics differ from the Cold War with less overall fragmentation and a greater role for non-aligned economies. Many non-aligned economies are benefiting from a new status as "connector" economies between the two blocs. The IMF has warned that economic damage from fragmentation may sacrifice as much as 7% of global GDP in the long term.

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https://m.economictimes.com/small-biz/trade/exports/insights/us-china-tensions-fragmenting-trade-and-investment-imf-finds/articleshow/109151086.cms