June 19, 2023  – The era of unfettered free trade is over. There’s bipartisan sentiment in Washington to build what national security adviser Jake Sullivan has called a “new consensus” around “a modern industrial and innovation strategy.” It’s echoed in Beijing and other foreign capitals that are aggressively pursuing protectionist policies. What comes next is still in the incubation phase. Yes, the Biden administration has enacted sweeping subsidies to boost production of semiconductors, batteries and green energy at home. There are already signs of a U.S. manufacturing resurgence. Industrial policy is clearly back, but how it gets implemented will set a precedent on the global stage. Is this new era one of decoupling or a growing trade practice known as “friend-shoring”?