Markets Sleepwalk Into a U.S.-China Decoupling
An economic decoupling between the U.S. and China seems more evident each passing day. Trade wars along with tensions between the two countries due to the pandemic are rapidly dissolving the relationship. This spells trouble for companies that are deeply embedded in Chinese companies’ supply chains. U.S. companies that have bet it all on the relationship returning to the status quo are at risk of permanent value impairment.