Geopolitical confrontations and economic dependence are becoming interdependent on each other in the modern era of the global economy. Companies in global value chains (GVCs) can no longer afford to follow efficiency-based models of production and distribution but rather they have to operate in a complex environment of political uncertainty strategic competition and systemic risk. The recent emergence of geopolitical rivalry in particular the rivalry between the major powers has brought a radical change to the structure and functioning of the world industries and has triggered new challenges to be addressed on the industry level (Luo and Van Assche 2023; Kim and Rho 2024).