US-China decoupling could benefit other countries, trade war game suggests

Key facts

• A game-theoretic model suggests that a US-China decoupling could lead to economic benefits for third countries.
• The simulation indicates that countries not directly involved in the trade dispute could see increased trade and investment.
• Shifting supply chains are identified as a key mechanism for these benefits.

A simulation exploring the economic implications of a US-China decoupling suggests that countries not directly involved in the trade dispute could stand to benefit. The game-theoretic model indicates that as supply chains shift away from the two largest economies, other nations may see increased trade and investment opportunities. This scenario highlights the potential for a reordering of global economic relationships as a result of ongoing trade tensions between the United States and China.