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US efforts to 'decouple' from China will hit limits

Wednesday, February 2, 2022

Significance

These are being reinforced by Chinese measures to maintain this integration, albeit on terms that favour China. China remains deeply integrated into many global supply chains.

Impacts

  • China will balance severe COVID-19 control measures with steps to maintain international linkages, especially in priority sectors.
  • The Biden administration will face obstacles to promoting broad-based economic ‘decoupling’ from China, domestically and overseas.
  • US ‘geoeconomic’ strategy will increasingly focus on strategic emerging technologies, and on pressuring key firms and partner countries.

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