{"id":20944,"date":"2023-05-15T11:43:08","date_gmt":"2023-05-15T11:43:08","guid":{"rendered":"https:\/\/crowdfundjunction.com\/blog\/de-risking-or-decoupling-china-us-bilateral-trade-falls-more-than-10-this-year-economics-bitcoin-news\/"},"modified":"2023-05-15T11:43:08","modified_gmt":"2023-05-15T11:43:08","slug":"de-risking-or-decoupling-china-us-bilateral-trade-falls-more-than-10-this-year-economics-bitcoin-news","status":"publish","type":"post","link":"https:\/\/crowdfundjunction.com\/blog\/de-risking-or-decoupling-china-us-bilateral-trade-falls-more-than-10-this-year-economics-bitcoin-news\/","title":{"rendered":"De-Risking or Decoupling? China- US Bilateral Trade Falls More Than 10% This Year \u2013 Economics Bitcoin News"},"content":{"rendered":"

(Originally posted on : Bitcoin News )<\/b>
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Analysts have criticized the new \u2018de-risking\u2019 strategy that the U.S. is currently using against China, explained by U.S. National Security Advisor Jake Sullivan in April, clarifying that national security was over economic costs. These de-risking policies might affect bilateral trade, which fell by 11.2% to $217.9 billion during the first four months of 2023.<\/strong><\/p>\n

\u2018De-Risking\u2019 Is a Euphemism for Decoupling U.S. and China Relations, Analysts State<\/h2>\n

Analysts are criticizing the \u2018de-risking\u2019 strategy of the US against China. The term, which was mentioned<\/a> by the U.S. National Security Advisor Jake Sullivan last month, is used to explain the position that the U.S. is adopting in front of the growth and policies of China on the Russia-Ukraine conflict. And while U.S. Treasury Secretary Yanet Yellen has previously stated that a full decuple of the economies of the two countries would be \u201cdisastrous,\u201d Chinese analysts believe that this is just a semantics choice.<\/p>\n

Zhou Xiaoming, a senior researcher at the Centre for China and Globalisation, has stated that this \u2018de-risking\u2019 strategy has \u2018nothing short\u2019 of decoupling in action, as it seeks to limit the economic interaction with China to just the necessary. Xiaoming explains<\/a>:<\/p>\n

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The U.S. will continue to trade with China as it has learned that totally cutting economic ties between the two is neither feasible nor desirable. Nevertheless, the Biden administration still appears intent on building a \u201csmall yard\u201d with a \u201chigh fence\u201d.<\/p>\n<\/blockquote>\n

This approach would be responsible for the inclusion of more Chinese companies in the called \u2018entity list\u2019 of the Office of Foreign Assets Control (OFAC), and the recent tightening of the export controls on chips to China, but might expand to other fields in the future, Xioaming states.<\/p>\n

Possible Effects on Trade<\/h2>\n

Xiaoming believes that this de-risking strategy seeks to also undermine the relations that China has with the world, stating that \u2018Washington clearly sees decoupling as critical to its strategy of reducing China\u2019s economic ties with the rest of the world.\u201d<\/p>\n

However, this might also be affecting American consumers and companies. According to the General Administration of Customs of China, bilateral trade has fallen<\/a> by 11.2% year over year during the first four months of 2023, after having registered<\/a> a $690 billion record in 2022.<\/p>\n

The European Union (EU) has also recently proposed to de-risk its relationship with China, facing a strong answer from Foreign Minister Qin Gang, who stated<\/a>:<\/p>\n

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China does not export its system, and it follows a path of peaceful development, pursues a mutually beneficial strategy of opening up, stays true to and safeguards the international order underpinned by international law, and opposes hegemonic, domineering and bullying practices.<\/p>\n<\/blockquote>\n

What do you think about the de-risking strategy applied by the U.S. government against China? Tell us in the comments section below.<\/strong><\/em><\/p>\n

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\nSergio Goschenko <\/h6>\n

\nSergio is a cryptocurrency journalist based in Venezuela. He describes himself as late to the game, entering the cryptosphere when the price rise happened during December 2017. Having a computer engineering background, living in Venezuela, and being impacted by the cryptocurrency boom at a social level, he offers a different point of view about crypto success and how it helps the unbanked and underserved.<\/p>\n<\/div>\n<\/div>\n

Image Credits<\/b>: Shutterstock, Pixabay, Wiki Commons<\/em><\/p>\n

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Disclaimer<\/strong>: This article is for informational purposes only. It is not a direct offer or solicitation of an offer to buy or sell, or a recommendation or endorsement of any products, services, or companies. Bitcoin.com<\/a> does not provide investment, tax, legal, or accounting advice. Neither the company nor the author is responsible, directly or indirectly, for any damage or loss caused or alleged to be caused by or in connection with the use of or reliance on any content, goods or services mentioned in this article.<\/p>\n<\/div>\n

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