Decoupling with China will be difficult and costly for the United States, Clyde Prestowitz, president of the think tank Economic Strategy Institute, said recently.
It is "impossible" to figure out the price of decoupling with China because some of the costs are speculative and "non-financial," said Prestowitz, who has worked as counselor to several U.S. presidents, in an online seminar on Thursday.
Escalating trade tensions and significant decoupling with China would hurt the U.S. economy further and reduce employment, according to a recent report released by Oxford Economics and the U.S.-China Business Council.
The trade war escalation and decoupling scenario would see the U.S. economy produce 1.6 trillion dollars less in real gross domestic product terms over the next five years, and result in 732,000 fewer jobs in 2022 and 320,000 fewer jobs in 2025, said the report.
