The Case for “Avalanche Decoupling” From China
Planning for Dramatic U.S. Action in a Crisis Will Make One Less Likely
Eyck Freymann and Hugo Bromley

January 29, 2025

 

As tensions rise in the Taiwan Strait and the South China Sea, U.S. efforts to deter Chinese aggression suffer from a fundamental credibility problem. The United States has conventional and strategic tools to deter Beijing, including the threat of punishing economic sanctions. But China is much too big and integrated into the global trading system to expel it from the world economy overnight. A sudden economic break between Beijing and Washington would be devastating for the United States and catastrophic for the rest of the world. Financial panic and supply chain disruptions would fracture the international economic order.....

https://www.foreignaffairs.com/china/case-avalanche-decoupling-china

 

Decoupling From China? The Consequences of a Stupid Idea

Ricardo Martins, October 10, 2024
There are ongoing discussions about the need for the West, especially the United States (US) and the European Union (EU) to de-risk and/or decouple from China. These discussions pervade all spheres, including journalistics, think tanks, academia and politics

https://journal-neo.su/2024/10/10/decoupling-from-china-the-consequences-of-a-stupid-idea/

 

The Real Strategic End Game in Decoupling From China 

Going all-in on the transatlantic economy is the only serious option for Western democracies seeking to counter China.

By Valbona Zeneli and Joseph VannSeptember 18, 2020 

In the shadow of the global COVID-19 disaster, governments around the world are rethinking trade practices with China. That effort requires some much-needed reflection about what a real economic partnership should look like. A near perfect example of that kind of partnership is the transatlantic economy. Built on foundations of the Industrial Revolution and then purposefully redesigned for greater success in the aftermath of World War II, the transatlantic economy has produced the largest and most successful trading bloc in the world, remaining the most dominant and interconnected force in the global economy.

In spite of the transatlantic economy’s successes, the argument could be made that the transatlantic community has overlooked the importance of this partnership. The evidence lies in the fact that we are not seriously maximizing investment opportunities within the partnership and thus limiting its potential. For too long our attention has shifted toward China, hoping to strike it rich quick.

https://thediplomat.com/2020/09/the-real-strategic-end-game-in-decoupling-from-china/

 

Here’s Why the Great Decoupling From China is Long Overdue
Jarrett Stepman | April 10, 2025

 

In the last few weeks, the world has been on a roller coaster ride over President Donald Trump’s proposals to massively increase tariffs.

Whether by intention or not, American trade policies now stand in an interesting place. Trump has paused America’s largest tariffs increases on virtually every country, save one: China. On China, the Trump administration announced Thursday that it will now apply a 145% tariff, an amount that seems to be climbing by the minute.

Who knows where this ride will end, but it very much appears that the U.S. economic decoupling from China is beginning in earnest, and not a moment too soon.

https://www.dailysignal.com/2025/04/10/heres-why-the-great-decoupling-from-china-is-long-overdue/

 

17 May, 2024 20:49
HomeBusiness News
Decoupling from China may be ‘impossible’ – survey
The Asian nation remains a “critical supplier” globally, according to an Allianz Trade report

Total economic decoupling from China would be “difficult, if not impossible,” a new report by international insurance company Allianz Trade has suggested, saying that the Asian power remains a “critical supplier” for much of the world.

The survey by Allianz Trade polled over 3,000 companies in China, France, Germany, Italy, Poland, Spain, the UK, and US on their outlook for global trade in 2024. 

The intensity of import dependency on China varies, with the US, UK, and France being among the most exposed. Nearly 50% of US imports from China are critical dependencies, it said.

“There is no evidence of a full decoupling from China yet,” the report said, noting that more than one-third of respondents plan to increase their footprint in China.

Despite talk of decoupling and diversifying away from China, “there is probably a limit to what extent this can happen,” Allianz said, adding that European countries remain bullish about their prospects there.

Some 39% of companies in Germany and Spain, and more than 30% in France, expect to increase their footprint in China, according to the survey. That’s compared with 27% in the US who plan to do the same.

“European companies are clearly less worried than US firms,” the report said.

The trend of diversification rather than decoupling seems more apparent, Allianz said, with a quarter of German, French and US firms expecting their footprint in China to represent “a smaller share of their global supply investments going forward.”

US and EU officials have been struggling to come up with a unified strategy on China as they try to reduce trade dependence on Beijing, which they have repeatedly accused of economic coercion. 

The Chinese government, meanwhile, has claimed that Washington and its allies have weaponized trade regulations in order to advance anti-China policies and accused them of “economic bullying.”

READ MORE: EU trade chief rules out China decoupling

Western officials, however, have recently shifted from the ‘decoupling’ rhetoric to that of ‘de-risking and diversifying.’ That approach was reflected in a joint communique adopted by the G7 during its summit in Japan in May, which accused Beijing of trying to “distort the global economy.”

Beijing rejected the allegations, saying the West is stuck in a “Cold-War mentality.”

https://www.rt.com/business/597806-china-decoupling-impossible-survey/?ysclid=m9d5nb08m4231587331

 

 

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YOURDEMOCRACY.NET RECORDS HISTORY AS IT SHOULD BE — NOT AS THE WESTERN MEDIA WRONGLY REPORTS IT.

 

         Gus Leonisky

         POLITICAL CARTOONIST SINCE 1951.

  

Tariff 'shock wave' could hit African economies

The president of the African Development Bank (AfDB), Akinwumi Adesina, said on Friday that an onslaught of US tariffs would send "shock waves" through African economies.

In a speech at the National Open University of Nigeria, Adeisna warned of reduced trade and higher debt-servicing costs on countries across the continent.

"Inflation will increase as costs of imported goods rise and currencies devalue against the US dollar," Adesina said. "The cost of servicing debt as a share of government revenue will rise, as expected revenues decline," he added.

If Trump restarts the tariffs after the 90 day pause, most African countries would be subject to a baseline 10%, but 47 African countries at risk of even higher tariffs.

The AfDB chief said this will cause local currencies to weaken on the back of reduced foreign exchange earnings.

Additionally, Adesina warned that Europe and Asia "will buy less goods from Africa" amid the global shocks.

 

European stocks slide amid volatility

European stocks finished the week with a downturn, after a week of volatility in the market following Trump's tariff delay and increasing trade war with China.

The pan-European STOXX 600 edged 0.1% lower, after China raised tariffs on US goods to 125% from 84%. The index briefly hit a near 1-1/2-year low earlier this week, then surged on Thursday after the tariff pause.

Both the benchmark and several regional indexes had their strongest session since 2022.

Friday's figures, however, represent a straight week in the red for the STOXX 600.

Meanwhile, the regional indexes had mixed results. Germany's DAX fell by 1%, while the UK's FTSE 100 went up 0.6%.

ECB President Christine Lagarde said that despite the volatility, euro zone financial markets are still functioning well.

 

US President Donald Trump is "optimistic" about striking a trade deal with China, the White House said Friday.

"The president has made it very clear he's open to a deal with China," White House Press Secretary Karoline Leavitt said, adding, "He's optimistic."

China said Friday it will raise tariffs on US goods to 125%, up from the 84% levy announced on Wednesday. 

"If China continues to retaliate, it's not good for China," Leavitt said.

Earlier this week Trump paused import taxes for other countries, but he raised tariffs on China and they now total 145%.

 

https://www.dw.com/en/trump-tariffs-china-slaps-new-125-levy-on-us-goods/live-72211113

 

 

READ FROM TOP.

 

YOURDEMOCRACY.NET RECORDS HISTORY AS IT SHOULD BE — NOT AS THE WESTERN MEDIA WRONGLY REPORTS IT.

 

         Gus Leonisky

         POLITICAL CARTOONIST SINCE 1951.