US and Allies Seek to Reduce Economic Ties with China as per C+1 Strategy

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The US and its allies are looking for ways to reduce their economic dependence on China, especially in sectors that are considered strategic or sensitive, such as technology, health, and energy. This is part of a broader effort to counter China’s growing influence and assertiveness in the world.

The US is leading an initiative to increase trade and cooperation among the G-7 countries and other friendly nations, such as India and Vietnam, in high-tech sectors. The initiative, dubbed “friendshoring”, aims to create alternative sources of supply and demand for critical goods and services, such as semiconductors, medical equipment, and renewable energy. The US is also coordinating with Japan and South Korea to limit the transfer of sensitive technology to China, which could pose a threat to their security and competitiveness.

The US-China economic decoupling has been accelerated by the Covid-19 pandemic, which exposed the vulnerabilities and risks of relying on China for essential supplies and markets. The US and its allies have also been alarmed by China’s aggressive actions in the South China Sea, Hong Kong, Taiwan, and the Indo-Pacific region, as well as its human rights violations and unfair trade practices.

However, the US-China decoupling could have negative effects on the global economy, according to the International Monetary Fund (IMF). The IMF has warned that the decoupling could lower global growth, increase inflation, and create more instability. The IMF has also suggested that India is a nonaligned country, which is not accurate, as India is a close partner of the US and shares its concerns about China’s behavior.

The US and India have dismissed the IMF’s warnings and criticisms as exaggerated and flawed. They have argued that the decoupling is not aimed at isolating China, but at creating a more balanced and resilient global economy. They have also stressed that they are open to dialogue and cooperation with China on issues of mutual interest, such as climate change, health, and trade.


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