4 February 2025

China Decoupling Beyond the United States: Comparing Germany, Japan, and India

Joshua Sullivan and Jon Bateman

Introduction

A number of U.S.-aligned countries are “decoupling” or “de-risking” their economic and technological ties with China in some form. Yet this international trend is often seen primarily through the lens of U.S. policy. Unilateral U.S. tools, like export controls, have enabled American officials to play an outsized role in isolating China from global supply chains—and in inspiring, or forcing, other countries to follow suit. Although U.S. leaders frequently debate these moves with allied counterparts, many in Washington still tend to presume that friendly nations are fundamentally like-minded on overall decoupling strategy.

In reality, the loose coalition of countries involved in decoupling from China have varied approaches and perspectives. No other country fully shares all U.S. goals. Understanding these differences—and the historical, economic, and political factors that drive them—will be key to effective policymaking in Washington and elsewhere.

This paper compares how three key countries—Germany, Japan, and India—have managed their technological and economic ties with China in the last twenty years. These countries are the world’s biggest economies after the United States and China. They all play leading roles in various technology sectors. And each country has a distinct set of economic and geopolitical interests at stake in their relationships with China. Collectively, the three countries serve as valuable case studies to explore divergence and convergence within the U.S.-aligned world on how to handle decoupling.


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