Topline: AEI’s Derek Scissors argues partial decoupling from China would benefit American companies by boosting competition and innovation. While US tech firms claim they rely on Chinese revenue to fund research and development (R&D), Scissors points out that business R&D declined for years after China joined the World Trade Organization—likely due to coercive IP practices.
More Competition: Scissors explains that business R&D grew fastest during periods of strong global competition, such as the late 1950s, early 1980s, and late 2010s. Partial decoupling would enable innovative companies to thrive and empower US leadership in vital industries.
“For American firms with higher exposure to China, R&D expenditure, patents, profitability, and employment have all declined.”
—Derek Scissors
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