Reducing dependence on China in the key technology and manufacturing sectors of the United States and European countries may require additional investments of $23.6 trillion over the next 25 years. This was reported by Zamon.uz publication reported.
According to the calculations provided by the publication, by 2050 the US will need $13.7 trillion, the Eurozone countries $9.1 trillion, and the UK $800 billion in investments.
It is noted that for the European Union, such expenditures are practically equivalent to nearly doubling the annual budget size.
The authors of the report noted that completely abandoning Chinese products is practically almost impossible. The main reason for this is explained by the fact that China controls the supply of over 60% of lithium and cobalt, as well as nearly 80% of graphite and rare earth metals.
At the same time, it is noted that products manufactured in China are cheaper than many local alternatives. According to experts, replacing them with other products could lead to an increase in inflation rates. In particular, in Europe, prices in some strategic sectors may rise by 1–2.5 percent.
Experts are proposing a "partial decoupling" strategy as the most acceptable solution. According to this, by investing in specific areas to strengthen the most vulnerable supply chains, the financial burden on the public and private sectors can be significantly reduced.
