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China didn’t just survive decoupling, it turned it into strategy

For foreign investors and policymakers, the lesson is clear – while one side drew lines, the other built bridges

    •  In May 2025, despite a sharp 35 per cent drop in exports to the US, China's overall exports rose 4.8 per cent year on year.  From being Beijing’s largest trading partner, it is gradually becoming just one of many customers.
    • In May 2025, despite a sharp 35 per cent drop in exports to the US, China's overall exports rose 4.8 per cent year on year. From being Beijing’s largest trading partner, it is gradually becoming just one of many customers. PHOTO: AFP
    Published Sat, Jun 14, 2025 · 07:00 AM

    WHEN the first Trump administration pushed for decoupling from China, it was framed as a geopolitical warning shot. Decoupling was meant to be a chokehold – a way to cut China off from capital, consumers, and core technologies. However, Beijing did not panic, it treated the move as a strategic signal. Rather than resist, China began quietly reconfiguring its global economic footprint.

    Washington thought it was cornering China. US President Donald Trump thought he held the cards, controlled the chips and set the rules. But he missed one inconvenient truth: Most of those cards were printed, packed, and shipped from factories in China.

    No grand speeches. No drama. Just deliberate moves: Diversifying supply chains, investing abroad, and pushing local tech to close the gap. While American legislators staged hearings, Chinese firms inked deals. While one side debated restrictions, the other redrew its map.

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