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Talk of economic decoupling between China and the United States, the world's two largest economies, surfaced amid their prolonged trade war, rising tech rivalry and general geopolitical tensions which have edged up in recent years. Decoupling transcends trade and investment and it could mean a peeling back of goods and services trade, divestment from China and the relocation of the American manufacturing presence out of China, but also a fragmentation of the global supply chain. It is believed a major decoupling move would mark the end of a long period of globalisation.
US presidential candidates lack consistent attitude towards TikTok as legislation that would ban the app passes the House of Representatives. Amid widening technology gap, US must reflect on why an algorithm developed in China gained prominence within the American market.
The State Department is urged to clarify its advisory for China and explain who exactly is at risk, since ‘they don’t tend to be students or scholars’.
As more details emerge related to US Treasury Secretary Janet Yellen’s coming trip to China, signs indicate excess capacity in sectors like electric vehicles will be a major sticking point in trade discussions.
Washington has asked countries with US business interests to avoid selling sensitive tech-related gear to China, and analysts say it would take China a while to develop its own advanced chips industry.
Chinese scholar Da Wei tells Beijing forum recent deterioration in major power relations are ‘very difficult times’.
Chinese leader also promises more policy support to build ‘first-class business environment’ in meeting with executives and academics.
Asia should guard against being ‘testing grounds for parallel systems’, says Liu Jianchao, who is tipped to be China’s next foreign minister.
Long Yongtu tells the Boao Forum for Asia that ‘globalised economic and trade systems are at stake’, and targeting Chinese companies in Mexico would mean higher prices for Americans.
Industry and information technology minister touts benefits of setting up R&D centres in China and teaming up with domestic firms, as inbound investments have slowed amid geopolitical tensions.
Before heading to Beijing next month, Yellen will be briefed in Guangzhou on the American business community’s concerns, including overcapacity issues, ahead of the US presidential election.
Customs data for January and February shows how anti-subsidy probes and trade restrictions are taking a toll on new-energy sector, putting EV producers at risk of being squeezed out of the market.
Foreign ministry in Beijing says recent criticisms ‘do not serve the sound and steady growth of China-US relations’.
In a Gallup poll released on Monday, 41 per cent of respondents said China when asked to name one country they considered to be their nation’s ‘greatest enemy today’.
Carmakers have been racing to source more battery and component production in America since the Biden administration’s 2022 Inflation Reduction Act, which required local sourcing to qualify for tax credits.
Concerns about Beijing’s potential to threaten US national security have spurred several bills seeking more scrutiny about who is representing Chinese interests.
Injecting funds into strategic industries such as alternative energy has given China a massive leg up on the international competition, but domestic experts say cracks may be showing.
DHL Global Connectedness Report sees shift as ‘less a decoupling and more a reduction of what had previously been an unusually high level of integration’.