Counterpoint Should the U.S. Completely Decouple From China?
May 14, 2025
Derek Scissors, a senior fellow at the American Enterprise Institute and chief economist at the China Beige Book, argues for a hardline U.S. stance against China. In contrast, Lizzi C. Lee, a fellow at the Asia Society Policy Institute, emphasizes that full decoupling isn't feasible. They discuss the complex implications of U.S.-China relations, the strategic challenges of decoupling, and its potential economic fallout. Both explore the balance between engagement and resistance amid rising nationalism in China and its impact on global dynamics.
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Broad Decoupling Depends on China
- Broad decoupling from China is dependent on Chinese behavior, especially under Xi Jinping's rule.\n- Decoupling has costs but can lead to a healthier U.S. economy and better security.
Decoupling Is Not Sufficient
- Broad or partial decoupling is not enough; the concept is limiting as China is deeply integrated into global supply chains.\n- A broader U.S. domestic agenda including STEM, immigration, and regulatory reforms is needed for competition.
Gradual Targeted Decoupling
- Implement decoupling gradually by targeting strategic sectors like semiconductors and critical minerals first.\n- Use quotas and aligned tax incentives rather than tariffs for clearer signals and effectiveness.