China's decoupling so far only symbolic

As bilateral tensions between the US/EU and China grow, all parties are extending their decoupling toolbox to increase leverage. China created the legal foundation in 2020 and 2021 introducing several new instruments to retaliate against US trade sanctions. While these instruments give the Chinese government sweeping power to retaliate against US measures, their actual implementation has remained slow.

Last updated: 24. July 2025