Fareed Zakaria, a well-known foreign affairs commentator, has cautioned that rising tensions between the United States and China could have detrimental effects on the U.S. economy. In a recent opinion piece for the Washington Post, Zakaria highlighted that policies aiming to separate the world’s two largest economies might backfire.
“Decoupling of the two economies would make the U.S. poorer,” Zakaria stated, referencing a forecast from Oxford Economics that predicts a potential 1.4 percent reduction in the U.S. gross domestic product (GDP). He pointed out that this could translate to “hundreds of billions of dollars of wealth lost annually,” considering factors like inflation, productivity declines, and missed opportunities.
Zakaria also raised concerns about the impact of limiting China’s technological advancement, such as restricting high-end chip imports. He suggested that these measures could motivate China to accelerate its own innovation efforts. “Have Washington’s expensive and cumbersome bans on technology only spurred China to innovate and become a fast follower?” he questioned. “Could it end up in a better place than if these bans had never been enacted in the first place?”
The commentator emphasized the importance of reassessing current strategies to ensure they do not inadvertently strengthen China’s position while weakening the U.S. economy. “It’s an uncomfortable question, but it must be asked,” Zakaria concluded.
