The installed power battery components are transported in a workshop in Liyang, east China's Jiangsu province. (PHOTO: XINHUA)

Decoupling and de-risking has significant global consequences, including the fragmentation of global value chains (GVCs), reduced efficiency, elevated production costs and higher consumer prices. International collaboration in research and development has also been hindered, stalling technological progress and innovation.

If China's access to the GVC declines, multinational enterprises would lose access to China's large market, knowledge, technological leadership and efficient industrial system-hampering their business plans and brand development.

China should be viewed as an opportunity and a driving force for worldwide economic recovery and prosperity, rather than a threat. A thriving China contributes significantly to global growth, and has accounted for one third of total expansion since the global financial crisis. Embracing collaboration and integration within the global value chains can lead to increased efficiency, innovation and shared knowledge.

Economic decoupling has detrimental impacts on the weakening global trading system, even with the emerging regional free trade arrangements, with long-term consequences to future cross-border flows of trade, investment and technology. Such costs will far outweigh any benefits of decoupling.

What the world needs is a new wave of global economic reintegration to offset the negative impacts of the pandemic and the global economic slowdown. Upholding the principles and practices of open trade and multilateralism is the key to achieving this.

— Ligang Song and Yixiao Zhou，https://www.eastasiaforum.org/, 24-07-2023