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The dangers of decoupling from China…—Global Macro Update

Today I spoke with Emily de La Bruyère, a senior fellow at Foundation for Defense of Democracies (FDD) and the founder of Horizon Advisory. We discussed China’s economic role in the global economic ecosystem as well as US/China great power competition.

In this edition you’ll hear Emily and me discuss:

• How relationships between the US and China are deteriorating and why that trend will likely continue…

• Why US regulatory controls will likely prove ineffective in protecting domestic industry from Chinese encroachment…

• How Taiwan’s economic dependence on China poses the greatest threat to its stability and future…

• What the US and Europe ultimately must do in order to successfully decouple from China…

• Why US and European private industry will eventually lose access to Chinese markets…

To learn more about Emily de La Bruyère click here:ère/

Did you like this interview? If so, you should learn more about Thoughts from the Frontline from Mauldin Economics—where you will receive in-depth weekly dispatches to help you understand what's happening in the economy and navigate the markets with confidence. Click the link to sign up:

Video Time Stamps

00:00 - Introduction
00:26 - The relationship between the US and China and the need to decouple
1:26 - Introduction of Emily
1:53 - China’s ultimate global and industrial strategy
2:11 - China’s role in the world’s economic ecosystem
2:27 – Yes, this is a great power competition
2:40 - Where competition will play out
3:15 - Why US/China relations will continue to fray
3:53 - China wants global control—not global leadership
4:47 - Why fundamental mainstream analysis misunderstands Taiwan
5:25 - Rising US/China tensions over Taiwan
5:45 - Taiwan’s outsized economic dependence on China
6:26 - How Chinese industry threatens US security interests
7:03 - Why the US and Europe need to get on the same page
7:34 - Why Airbus is a microcosm of European industry in China
8:41 - The looming danger to the industrial private sector
9:23 - Why US restrictions and regulations are ultimately ineffective
9:48 - How China can still access US industry and technologies
10:21 - The real difficulty in decoupling from China quickly
11:23 - US military dependence on Chinese manufacturing
12:06 - Chinese markets aren’t a recipe for infinite growth
12:47 - There is no free lunch—European companies will lose Chinese markets
13:21 - Decoupling—the risks of inaction
14:18 - Is the CHIPS Act a good start?
15:29 - Why semiconductors are just the beginning
16:03 - The two US/China decoupling scenarios that could play out
17:24 - Chinese control over new industries and production
18:21 - The grim repercussions of inaction
18:54 - Europe hasn’t picked a side but sooner or later it will have to
19:44 - The decline of US industry
20:17 - How we can develop more reshored production without inflation
21:13 - The inevitability of an inflationary cycle
21:39 - The crucial rise of Canada, Mexico, and Europe in decoupling
22:30 - Where to get more information from Emily

Want to hear more from Emily and stay up-to-date with new info on US-China decoupling and much, much more? Click here to learn more at
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John Mauldin
Each week, investors and financial professionals around the globe turn to John Mauldin to better understand Wall Street, global markets, and the drivers of the world economy. And for good reason. John is a noted financial expert, a New York Times best-selling author, a pioneering online commentator, and the publisher of one of the first publications to provide investors with free, unbiased information and guidance—Thoughts from the Frontline—one of the most widely read investment newsletters in the world.
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