U.S. companies and the economy as a whole would lose hundreds of billions of dollars if investment in China is halved or if a new round of reciprocal customs duty increases
This is said in a study by the U.S. Chamber of Commerce.
Analysts predict that a 2-fold reduction of foreign direct investment in China would reduce investors’ capital by $25 billion. And while US manufacturers would benefit from such a decision, the US GDP would suffer a loss of $500 billion.
“Separating the two huge economies will be costly”, – the Chamber of Commerce says, stressing that the US and the PRC remain deeply interconnected.