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Unwise to Decouple from an Innovative China

Source: Science and Technology Daily | 2026-01-06 08:37:29 | Author: QI Liming

China has become a major driver of global innovation, as it develops fast in the field of science and technology through multi-dimensional innovation and cooperation. Attempting to decouple from China is not only impractical but also counterproductive.

An article posted on The Hill wrote that the U.S. policy of strategic decoupling from China, initiated under the premise of national security and economic resilience, has become one of the most defining and contentious features of 21st century global commerce. Almost a decade after the first major tariffs were imposed, the results are becoming clear: the strategy is profoundly confusing American allies, penalizing American innovation, and inadvertently accelerating China's technological independence.

The financial cost to American industry is staggering. NVIDIA, a key innovator in the AI sector, is a prime example. The on-again, off-again chip restrictions imposed throughout 2025 have already cost the company billions in anticipated revenue.

These are not trivial numbers. This revenue, which American companies would typically reinvest in domestic research, development and high-wage jobs, is now simply vanishing from U.S. balance sheets.

According to the Council on Foreign Relations, U.S. consumers have benefited from lower prices, and U.S. companies have profited immensely from access to China's market.

In a 2019 study, economists Xavier Jaravel and Erick Sager found that increased trade with China boosted the annual purchasing power of the average U.S. household by 1,500 USD between 2000 and 2007.

A 2023 report by the U.S.-China Business Council, an industry group, found that exports to China supported more than one million jobs in the U.S., or about 0.5 percent of the civilian labor force.

Currently, economic globalization is irreversible. As a key link in the global industrial chain, China's market size and potential have an irreplaceable appeal to enterprises from all over the world. Attempting to "break away" forcibly with China will not help solve America's problems. Instead, it will put the implementer in a passive position and hinder its own development.

Editor:QI Liming

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