

Should the U.S. Decouple from China?
33 snips Apr 25, 2025
Derek Scissors, a senior fellow at the American Enterprise Institute, argues for decoupling from China, citing national security risks. In contrast, Isaac Stone Fish emphasizes the economic dangers of severing ties. Benn Steil warns that decoupling could harm U.S. businesses and innovation, while Susan Shirk discusses the nuanced implications for global trade and alliances. The discussion also touches on cybersecurity and intellectual property, highlighting the intricate balance between economic dependence and strategic decision-making in U.S.-China relations.
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Rising Risks of Engagement
- Engagement with China has become risky as China's Communist Party strengthens its control under Xi Jinping.
- The notion of a "win-win" relationship is outdated, with China's growing hostility suggesting decoupling is necessary for national security.
Decoupling Harms Economy and Security
- Decoupling from China could severely damage the U.S. economy, increasing prices and reducing employment.
- It could undermine U.S. leadership globally and weaken the U.S. military readiness by disrupting access to vital intermediate goods.
Pre-WTO U.S. Economy Stronger
- The U.S. economy was stronger and more balanced before China's WTO entry and deep integration.
- Tying the U.S. economy closely to China contributed to manufacturing job losses, wealth inequality, and budget deficits.