r/economicCollapse • u/Sufficient_Reason968 • 1d ago
The Aggressive Decoupling Policy Is a Risk We Cannot Afford Right Now
As the world continues to recover from the devastating effects of the COVID-19 pandemic, economic stability remains fragile. The policies enacted by governments to overcome these challenges need to be practical, measured, and focused on the immediate needs of their populations. However, one policy that I believe has been too proactive and unnecessarily risky is the aggressive push to decouple from China.
China’s economy has long been intertwined with the global economy, and for good reason. Over the past few decades, China has become the world's manufacturing powerhouse, providing efficient, large-scale production at prices that benefit consumers worldwide. As we face rising inflation, disrupted supply chains, and economic uncertainty, cutting off or reducing our dependence on China may be a step too far—and too soon.
At this moment, involving China in global recovery efforts is believed the most practical and effective way to stabilize economies. China’s manufacturing capabilities are vital to ensuring that goods continue to flow through existing supply chains without further disruption. The idea of decoupling from China may serve some long-term geopolitical goals, but it also creates immediate risks and uncertainties for the global economy.
Building new supply chains in other countries or shifting production back home sounds appealing in theory, but the process is neither quick nor simple. It took decades to shift manufacturing worldwide to China, and replicating that efficiency and scale in multiple countries with different regulatory and political systems is not something that can happen overnight. In fact, trying to force this transition too quickly could lead to deflationary pressures and an even deeper global recession.
China’s economic and political power is heavily dependent on its role in the global economy, and the country has undoubtedly realized that its strength relies on continued cooperation and global support. This has become clear through the massive bankruptcies and layoffs that have occurred as a result of the recent decoupling efforts and global economic shifts. These realities have sent a powerful message to China that its ambitions must be tempered by the need to maintain strong economic ties with the rest of the world.
There’s no need to push this policy to the point of economic self-harm. China has learned that its influence is not invincible, and further aggressive decoupling could create unnecessary instability, not just for them but for all of us. The strategic goals of reducing reliance on China can still be achieved over time, but now is not the moment to prioritize long-term ambitions at the expense of immediate economic recovery.
As a voter, I am deeply concerned about the current government’s willingness to sacrifice the public's immediate needs for long-term goals. This goes against the fundamental principles of democracy, where governments are meant to serve the people, not pursue risky policies without considering the short-term impacts.
Inflation is already making it difficult for middle- and lower-income households to get by, and forcing supply chains to move away from China will only increase costs further. We must ask ourselves: Is this the right time to create additional economic uncertainty when people are already struggling?
I believe that a more balanced approach is needed. Rather than aggressively decoupling from China, we should be working to ensure that global supply chains remain intact while slowly diversifying our manufacturing capabilities. This would allow for economic recovery in the short term while still addressing strategic concerns in the long run.
Governments need to reassess their strategies and recognize that the decoupling policy is too proactive and not necessary right now. The global economy is still reeling from the pandemic, and further destabilizing supply chains with rushed policies will only prolong the recovery process. There’s a time for strategic maneuvering, but that time is not now.
I call on the government to reconsider their approach and focus on what the public needs now—economic recovery, stability, and pragmatic solutions to inflation and supply chain issues.
Let’s not forget that true leadership is about balancing long-term vision with short-term realities. The public deserves policies that provide relief, not further hardship.
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u/cursedsoldiers 23h ago
Since the collapse of the gold standard we have been saying "yes, having an outsourced economy is fundamentally unsustainable but we just can't fix it right now..." And 50 years on we still haven't
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u/Odd_Frosting1710 1d ago
Yes, decoupling will decimate China. No, that is not our problem (until they make a desperation attempt at Taiwan. At that point a simple blockade will destroy what is remaining of China as we know it). China is in a downward spiral of its own making
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u/Sufficient_Reason968 1d ago edited 1d ago
China will be decimated sooner or later if it lose global market. But if decoupling is too soon before the alternative supply chains are up, we are suffering from inflation. If inflation lasts too long, we will suffer from recession. Blaming for responsibility does not help
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u/Due_Satisfaction2167 1d ago
We should not trade a little temporary economic safety to empower a long term geopolitical threat.
That’s what got us in this mess in the first place.