Cutting China Off from US Would Cost America Hundreds of Billions of Dollars: Report - Tasnim News Agency

The US economy could lose more than $1 trillion worth of production and long-term global competitiveness if the White House pursues a sharp separation with China, according to a report released Wednesday by the US Chamber of Commerce and Rhodium Group.

As US President Joe Biden looks set to retain his predecessor’s tough stance on China, the authors of the report laid out estimates for the enormous costs of sweeping — rather than targeted — policies to protect US national security from Beijing’s growing economic and technological clout, CNBC reported.

These projected losses include: By 2025, $190 billion a year in in US output by expanding 25% tariffs to all trade with China. In the coming decade, full implementation of such tariffs would cause the US to fall $1 trillion short of potential growth.

Up to $500 billion in one-time GDP losses if the US sells half of its direct investment in China. American investors would also lose $25 billion a year in capital gains.

$15billion to $30 billion a year in exported services trade if Chinese tourism and education spending falls to half of what it was prior to the coronavirus pandemic.

Research for the 92-page report began in 2019, before the coronavirus pandemic hammered the global economy...