September 3, 2023
3 mins read

America’s ‘3 Ds’ to Curb China Ties and Global Ambitions

The current preference is derisking, a vague term that has occurred most frequently in speeches and remarks by Biden administration officials in relation to China…writes Yaswant Raj

Under President Joe Biden, the US has sought to trim economic ties with its chief competitor for global dominance, China, but it has struggled to decide how to describe it. Is it ‘derisking’, ‘decoupling’ or ‘diversifying’?

The current preference is derisking, a vague term that has occurred most frequently in speeches and remarks by Biden administration officials in relation to China.

Here is the latest: “We are derisking, we’re investing in America, but we are not decoupling or trying to hold down China’s economy,” said Gina Raimondo, the US Commerce Secretary, during a visit to China, earlier this week.

Derisking was added to the vocabulary of the West’s relations with China by European Union President Ursula von der Leyen in May. It was not just a gentler alternative to decoupling, but more realistic as it acknowledged the impossibility of separating the Western economy from China, which is the world’s largest manufacturer of goods, especially household essentials such as TVs, computers, refrigerators, air-conditioners and kitchen appliances.

The US picket it up a month later in a major policy speech by National Security Advisor (NSA) Jake Sullivan. And derisking became the US narrative.

The next month, the US-China narrative received another tweak.

“We’re not looking to decouple from China, we’re looking to de-risk and diversify our relationship with China,” Biden said at a news conference in May.

But diversifying as the second alternative had to wait a few weeks longer.

“There is an important distinction between decoupling, on the one hand, and on the other hand, diversifying critical supply chains or taking targeted national security actions,” Janet Yellen, the US Secretary of Treasury, said during a visit to China in July.

It was an even gentler alternative to decoupling.

But it has not found much favour with the Biden administration, which has shown a preference for derisking.

“Secretary Raimondo will carry with her the message that the United States is not seeking to decouple from China, but rather to derisk, and that means protecting our national security and ensuring resilient supply chains alongside our allies and partners while we continue our economic relationship and our trade relationship,” NSA Sullivan told reporters ahead of Raimondo’s China visit.

The search for the right ‘D’ has not deterred the Biden administration from doing what it has always wanted to do: Curtail economic ties with China with the strategic goal of addressing challenges posed by China to America’s economic and political might and security.

The most recent of these moves came in an executive order issued in August prohibiting Americans — firms, individuals and entities — from investing in China in sensitive sectors.

Earlier this week, the administration prohibited Nvidia and AMD from importing GPUs to West Asian countries fearing onward passage to China.

Decoupling was a manifestation of US frustration with China during the Covid-19 disruption of supply chains borne of the complete shutdown of the Chinese economy for almost three years.

Americans became acutely aware for the first time of their dependence on Chinese manufacturers, more than the disruption caused by former President Donald Trump’s escalation of the tariff on Chinese goods.’

ALSO READ: Investors Worry Over China’s Sluggish Growth

Previous Story

Map Row: China Urges India to Keep Its Cool

Next Story

Russian envoy’s invite to Nobel ceremony cancelled

Latest from -Top News

US Backs India’s Hunt for Pahalgam Terrorists

Gabbard’s “hunt down” message comes amidst escalating Indian response to the terrorist attack, saying it had clear “cross-border” links to Pakistan….reports Asian Lite News Tulsi Gabbard, Director of National Intelligence (DNI), on

Border Sealed, Hopes on Hold

A Hindu family from Balochistan’s Sibi was reportedly denied entry into India after the closure of border crossing….reports Asian Lite News Pakistan and India’s decision to shut down the Wagah-Attari border crossing

India Praises UAE’s Global AI Benchmark 

Kaustubh Dhavse, Maharashtra CM’s OSD, hailed the UAE’s AI model as a global benchmark driving digital innovation and attracting global talent…reports Asia Lite News Kaustubh Dhavse, Joint Secretary and Officer on Special

India, Saudi Hold Inaugural Army Staff Talks 

A key highlight of the talks was the exploration of collaboration in operational logistics, battlefield management systems, and niche technologies.  The inaugural Army-to-Army Staff Talks (AAST) between the Indian Army and the

Arab World Condemns Kashmir Terror Attack 

The Arab world has strongly condemned the deadly terrorist attack in Pahalgam, with leaders from Kuwait, Saudi Arabia, the UAE, Qatar, Iraq, Jordan, and the broader League of Arab States offering condolences
Go toTop

Don't Miss

Myanmar-China Trade Hit By Conflict

Since the start of a major anti-junta offensive late last

SPECIAL: What’s Wrong With Imran’s Afghan Policy?

Taliban are firm on their decision to keep the neighbors