Geopolitics

Economic Decoupling

Definition

The deliberate separation of economic ties between countries — particularly the US-China technology and trade decoupling that accelerated after 2018.

Explanation

US-China decoupling includes tariffs, export controls on semiconductors and AI chips, investment screening, and bans on specific companies (Huawei, TikTok). "De-risking" replaced "decoupling" as the preferred EU term, suggesting selective reduction rather than complete separation. Full decoupling is economically impractical for the world's two largest economies.