Decoupling means little. The reason why US corporations outsource to China is because that's where they can make the most money for what they're selling. Any place else will cost more money. It's not as simple as who has the cheapest labor. The US has to be engaged with China because they need to be in control of China. Like I've said before, China just existing puts into question everything they were taught to believe. They have to take credit for Chinese successes and they can't do that when there's no relations. If they ended all relations, their only option in dealing with China would be from using the military. If they're afraid to take on North Korea, China ain't going to be easier. The US will have to spend money to protect and keep there allies in Asia. That's why many Asian countries want a return of the Cold War because then the US will more likely have to give money away like they did before. Money the US doesn't have to counter China. In this Cold War it's the US that will lose because Americans will be in the position of the Soviets where they will be countering everything China does and that will cost them money and even their own allies will take advantage. It's not the nightmare scenario for China. It's the nightmare scenario for the US to end relations. Everyone uses the China card in dealing with the US even allies. That's why they don't end relations when they act like they don't need anyone or they would've done it. The words of the anti-China hawks are empty threats designed to intimidate China into submission.
They want their rare earth elements cheap. They will never be able to process them in a developed economy. China sits at the sweet spot no other country has. Lower labor costs the Western world doesn't have and China has the technology developing countries cannot afford. Since most rare earth elements aren't actually rare, it's extracting them from the earth that drives up the costs meaning it's the money factor that prevents them from processing it themselves. It's irrelevant when you hear news that there's a non-Chinese rare earth deposit discovered somewhere. They ship it to China to be processed anyway. The only way they can get them cheap without China is to violate a whole lot of people's human rights. Can't do that in a developed economy with supposed labor laws they say they like in a country that drives up costs to make labor risk it. The only reason why you have all these poor countries gravitate to the US is because they want money. The US will have to find a country of poor people that will risk their health processing rare earths because of all the chemicals needed to separate and concentrate the elements they seek for little pay and protection.
Anything that cost US corporations more money means less margins thus less profits which in turn lowers stock value. Wall Street hates that. China will offer a cheaper alternative thus killing US competition. Any other country will have far fewer options than the US so they will go to China to buy cheaper and that will beat US competition and they go bankrupt. The only way the US will be able to stop it is by dictating to allies who they can trade with. Every other economy is dependent on the world to sell to and the US is going to tell them who they can sell to and buy from? Bye-bye free market and capitalist principles.
End relations with China and everything literally and figuratively will cost them more. In turn that will mean less money for developing technology. Less money to buy influence around the world. It's hurt China too but not as much because China's economy has already been isolated for decades because of Western policies hence why China has it's own economic ecology working which is why the anti-China hawks are in fear of the future. The only way they can stop it is by being the bad guy. Just look at the Meng case in Canada. Canada is only getting words of support but no action in helping free detained Canadians because everyone sees the hypocrisy and it's Canada's mess that it started in helping US's attempts at trying to stop foreign competition from beating theirs.
There's hole to that argument US bluffing about decoupling.
Many conservative would love to go back pre Nixon time when China was not engaged. There's this sentiment of big regret of engaging China and brought it to WTO subsequently. This cold war against China is seen as redemption.
Many of them think by decoupling, China would greatly dimished and that means China would less capable of challenging US leadership in the world.
To them, that perceived benefit would outweight the idea of controlling China.
Boxing China to a hole and contained is a very appealing idea to them.
To them even if it means costing more to US. To greatly dimish the strongest opponent is worth it.
Read about Peter morici article.
China , cannot take that as bluffing, it has to prepare for that .
