Monday, April 15, 2024

The Great Decoupling

Authors: Keith JohnsonRobbie Gramer

Affiliation: Foreign Policy

Organization /Publisher: Foreign Policy

Date/Place: May 14, 2020/ USA

Type of Literature: Article 

Word Count: 5750


Keywords: Pandemic, China, Washington, Decoupling, Economy.


In the post-pandemic era, Washington is persistent in decoupling from China although the last big economic rupture brought on two world wars and a depression. The article encapsulates that the US has already thrown out the idea of strategic engagement with China as a major geopolitical rival. On the other hand, China has taken advantage by active diplomatic engagements worldwide. The weakened US-China economic ties that bind more than $650 billion in annual two-way trade, tens of billions more in investment, and China’s trillion-dollar holding of US government debt, will modestly improve this hostility. Additionally, aggressive US-China foreign policy will take hard reforms which will push not only the US and China towards economic complexity but the whole world. The authors say that breaking economic ties will lead to increased friction, and the nature of decoupling means that China will stop collaborating.  In this regard, the US seems to be rolling back global supply chains and trade. 


By: Maryam Khan, CIGA Research Associate



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