Issue A more competitive geopolitical environment framed around the China challenge

Summary

The Megatrends 2040 report expects the global geopolitical environment to grow more competitive, driven mainly by China's challenge to the United States and its allies. It describes major powers as racing to set the rules of the emerging order. This rivalry is expected to play out across all sectors, from communications, information flows and media to trade and technological innovation. The report links the shift to a broader imbalance in which existing institutions and governance models appear to have reached their limits. It also anticipates more conflict and tension within communities and states, with domestic politics becoming more unstable as governments struggle to meet citizens' demands.