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Decoupling and the DIB

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ASH SHU’AYBAH, Kuwait (January 13, 2008) Mine resistant ambush protected vehicles (MRAP) are offloaded from the Military Sealift Command roll-on/roll-off ship USNS Pililaau (T-AKR 304) onto the pier. U.S. Navy photo by Mass Communication Specialist 2nd Class Kelvin Surgener

Some thoughts on the impact of the trade war on the US defense industrial base...

As the United States and China haveĀ begun to consciously decouple, the implications of breaking up the relationship that has driven global economic growth for the last 30 years are coming into view. The complex relationships between U.S. and Chinese firms, which manufacture goods in both countries for sale around the world, are under threat as tariff and regulatory walls make inter- and intra- firm trade more difficult. These developments have made FDI, and the establishment of long-standing alliances between firms, a sketchy prospect for U.S. companies.

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