Mikael Wigell, CEO of Economic Security Forum, notes a shift from market to strategic capitalism. Policymakers worldwide are steering investment to enhance national security and technological capacity. Industrial policy is surging, aligning with trade barriers to attract foreign investment and reconfigure supply chains strategically for long-term resilience.

Strategic capitalism marks a break from past economic norms. Policy risk now shapes capital allocation as much as market fundamentals. Foreign investment screening has become standard practice, with more than forty nations conducting FDI reviews for national security. Firms are redirecting production to trusted partners while reducing exposure to China, reshaping the global investment landscape.

The reordering of the investment geography reflects geopolitical alignment. ESF’s Corporate Response Tracker shows firms adapting to strategic rules influencing markets. Strategic capitalism’s critics warn of protectionism and inefficiency risks, but forward-looking governments aim to use economic security tools to drive innovation, clean transitions, and private investment. Balancing state intervention with market dynamism will define the next global growth era.

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