The ludicrous scheme to economically decouple China

DECOUPLING takes place when different classes of asset that typically rise and fall together start to move in the opposite directions, such as one increasing and the other decreasing. One example might be seen in the exchange of oil and natural gas prices, which typically rise and fall according to demand.

From a layman’s point of view, this is to indirectly justify economic sanction on specific products upon which the country is threatened to surpass its imports and exports like micro-chips, feeling insecure that should China surpass the US in the manufacture, production and export of these products, that eventually could contribute to the weakening of its hegemony in this particular field of economic competition.

Many countries in the West today resort to the weapon of economically decoupling states in the belief certain products were originally produced and/ or invented by them, and the export or sale of these products would violate certain rights as if to indirectly emphasize these products have exclusive patents and cannot be reproduced, manufactured or exported without violating their so-called “patent rights.”

The theory of decoupling is a more civilized way of imposing economic sanction which often leads to war.

In practice, countries that impose sanction by way of decoupling states sees them as threat to their own economic security.

They often overlook the possibility the sanctioned state sometimes is more economically refined or has more potential in advancing against those that impose the said sanction.