The world enters 2026 amid the heightened uncertainty, underscoring the need for through subsidies, tariffs, export controls, capital controls and local content Cyber conflicts are likely to escalate, particularly across the Al value chain, governments are increasingly treating Al assets (foundation models, training data, compute infrastructure) as national security priorities and critical infrastructure. Geopolitical competition for scarce resources will intensify, including critical As Chinese firms diversify beyond China — localizing production, data and management and strategic planning. Key impacts include elevated country-specific risks, longer investment cycles and higher execution thresholds. Source: 1. 2026 Geostrategic Outlook, EY Parthenon, December 2025