Strategic US-China decoupling in the tech sector



Alex Capri | Hinrich Foundation

Ongoing tari disputes which began in 2018 have resulted in supply chain decoupling from China. These events have been accelerated by the 2020 coronavirus pandemic, and the tech sector has become ground zero for these trends.

COVID-19 has laid bare the systemic di erences between China and the US, particularly the challenges posed by Beijing’s state-planned economy, which has grown to almost 20% of global GDP.

A recent White House document
lays out the prevailing bipartisan Washington mindset regarding China: “The CCP [Communist Party of China] has chosen to exploit a free and open system and rules-based order and attempt to reshape the international system in its favor.”1

Geopolitical competition between the US and China, therefore, has reached a historic tipping point. It has taken on the characteristics of a new “cold war”, even as extensive trade and commercial ties – which have been built up over decades – continue on uncertain terms. This is the China conundrum facing multinational businesses.

Hinrich Foundation-Strategic Technology Decoupling from China-Alex-Capri-08 June2020

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