COVID-19 Increases Likelihood of U.S. and China Economic Split

April 17, 2020

The fallout of the coronavirus outbreak has accelerated changes and making previously impossible scenarios more likely. One such scenario is an economic decoupling between the world’s two largest economies: China and the United States.

The American Chamber of Commerce in China conducts a regular survey on the opinions of American businesses that do business with China. Their most recent survey conducted in late March found that just 44% of the 25 large companies surveyed said decoupling with China would be impossible. This is a large drop from the 66% of businesses that felt the same in the October survey.

Though only 16% said they intend to shift some or all of their operations out of China, more companies are looking at sourcing their materials in different locations.

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