• Decoupling from China is gaining steam, but many voices in the financial press and international economic organizations are sounding a note of concern.
• Critics of decoupling often conflate it with deglobalization, but they are not the same. Decoupling could even make the world more globalized.
• Actual deglobalization started before Trump, likely due to the financial crisis of 2008.
• Studies predict significant losses from decoupling, but their models rely on questionable assumptions.
• Instead of reverting to the old equilibrium of 2015, we should be thinking about how to shape the next wave of globalization in a way that encourages global economic growth while also providing security.
Published February 16, 2023
Visit Noahpinion to read Noah Smith’s original post Decoupling is not deglobalization
