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Four years into the trade war, are the US and China decoupling?
Chad P. Bown 2022-10-26
For many decades China and the United States have been locked in such a tight economic embrace that it is challenging to quantify whether, how, or why the embrace may be weakening. Are the mounting tensions, bordering on hostility, between the two superpowers causing their economies to “decouple”?
Yes and no. On the one hand, US imports of certain products from China—including semiconductors, some IT hardware, and consumer electronics—have fallen dramatically. Even clothing, footwear, and furniture imports are down.
But on the other, imports from China of laptops and computer monitors, phones, video game consoles, and toys are higher than ever. Demand for these products surged in response to the COVID-19 pandemic. Stuck at home, Americans switched their spending away from services and toward many of these goods manufactured in China.
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