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Decoupling With China Would Hurt U.S. Businesses, Chamber Says

Decoupling With China Would Hurt U.S. Businesses, Chamber Says

WASHINGTON—The U.S. Chamber of Commerce is warning that rising tensions with China could have serious consequences for U.S. businesses, laying out a w

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WASHINGTON—The U.S. Chamber of Commerce is warning that rising tensions with China could have serious consequences for U.S. businesses, laying out a worse-case scenario where some major U.S. industries would be crippled.

Full decoupling—meaning a complete cutoff of sales to China—would cost the U.S. aircraft and aviation industry between $38 billion and $51 billion in sales annually, the report estimates. That would translate to between 167,000 and 225,000 jobs lost.

Similarly, an end to U.S. semiconductor sales to China would cost the industry $83 billion in revenue and 124,000 jobs, according to the report entitled “Understanding U.S.-China Decoupling.”

The scenarios laid out in the 88-page report envision a complete end to sales between the two intertwined economic superpowers—the kind of outcome that is only likely to happen in an all-out war.

Still, the Chamber argues, it is important to contemplate extreme cases as a way to focus policy makers on the costs involved in battling China.

This post first appeared on wsj.com

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