Home PoliticsAmerica Biden Pushes US China Decoupling

China’s Ministry of Commerce (MOC) on Thursday made remarks on the U.S. administrative order of reviewing U.S. companies’ investments going abroad.

The United States imposing limits on its own companies investing abroad is an act of decoupling and severing industrial and supply chains under the guise of de-risking in the investment sector, a spokesperson with the MOC said.

The act gravely deviates from the principles of market economy and fair competition advocated by the United States, affects the normal business decisions of enterprises, undermines the international economic and trade order, and seriously disrupts the security of global industrial and supply chains.

China is seriously concerned about it and reserves the right to take measures, according to the spokesperson.

“We hope that the U.S. side will respect the laws of market economy and the principle of fair competition, refrain from artificially impeding global economic and trade exchanges and cooperation, as well as setting obstacles for the recovery of world economic growth,” the spokesperson said.

The Impact of Decoupling from China on the USA

The United States and China have been engaged in a trade war for several years now, and there is growing talk of decoupling the two economies. Decoupling would mean that the US and China would reduce their economic interdependence and focus on developing their own industries.

There are a number of potential impacts of decoupling on the USA. One impact is that it could lead to higher prices for consumers. This is because the US would have to rely more on domestic production for goods and services that are currently imported from China. Domestic production is often more expensive than imported goods, so prices could go up.

Another impact of decoupling is that it could lead to job losses in the United States. This is because some US companies would likely move their operations out of China if there was a decoupling. This would lead to job losses in the manufacturing and service sectors.

Decoupling could also have a negative impact on the US economy as a whole. This is because China is a major trading partner for the US. If the two countries were to decouple, it would reduce trade between them and could lead to a slowdown in the global economy.

You may also like

logo-white

Your Trusted Source for Capital Markets & Related News

Latest Articles

© 2023 LiveTradingNews.com – For The Traders, By The Traders – All Right Reserved.

The information contained on this website shall not be construed as (i) an offer to purchase or sell, or the solicitation of an offer to purchase or sell, any securities or services, (ii) investment, legal, business or tax advice or an offer to provide such advice, or (iii) a basis for making any investment decision. An offering may only be made upon a qualified investor’s receipt not via this website of formal materials from the Knightsbridge an offering memorandum and subscription documentation (“offering materials”). In the case of any inconsistency between the information on this website and any such offering materials, the offering materials shall control. Securities shall not be offered or sold in any jurisdiction in which such offer or sale would be unlawful unless the requirements of the applicable laws of such jurisdiction have been satisfied. Any decision to invest in securities must be based solely upon the information set forth in the applicable offering materials, which should be read carefully by qualified investors prior to investing. An investment with Knightsbridge is not suitable or desirable for all investors; investors may lose all or a portion of the capital invested. Investors may be required to bear the financial risks of an investment for an indefinite period of time. Qualified investors are urged to consult with their own legal, financial and tax advisors before making any investment. Knightsbridge is a private investment firm that offers investment services to Qualified Investors, Members and Institutions ONLY. Qualified Investors are defined as individuals who have met those Qualifications in the relevant jurisdictions. Members are defined as individuals who have been accepted into the Knightsbridge membership program. Institutions are defined as entities such as banks, pension funds, and hedge funds. If you are not a Qualified Investor, Member or Institution, you are not eligible to invest with Knightsbridge. All investments involve risk, and there is no guarantee of profit. You may lose some or all of your investment. Past performance is not indicative of future results. Knightsbridge is not a registered investment advisor, and this disclaimer should not be construed as investment advice. Please consult with a qualified financial advisor before making any investment decisions. By accessing this website, you agree to the terms of this disclaimer. Thank you for your interest in Knightsbridge.