Decoupling with China to significantly hurt U.S. businesses,

Decoupling with China to significantly hurt U.S. businesses, innovation: report


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2021-02-18 15:03:35Xinhua
Editor : Zhang Mingxin
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American businesses would be significantly impacted with hundreds of billions losses in foregone GDP and capital gains and U.S. productivity and innovation undermined if the United States and China were to fully decouple, a new report showed Wednesday.
The United States would forgo 190 billion dollars in gross domestic product (GDP) annually by 2025, if 25-percent tariffs were expanded to cover all two-way trade, according to the analysis by U.S. Chamber of Commerce's China Center in partnership with Rhodium Group.
If decoupling leads to the sale of half of the U.S. foreign direct investment (FDI) stock in China, U.S. investors will lose 25 billion dollars per year in capital gains, and models point to one-time GDP losses of up to 500 billion dollars, showed the report titled "Understanding U.S.-China Decoupling: Macro Trends and Industry Impacts."

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