Divorce or temporary separation? Lessons from the US's history of decoupling with China and other nations

Dan Prud'homme, Nianchen Han, David McCourt, Aya Chacar

Research output: Contribution to journalArticlepeer-review

Abstract

Binational decoupling—especially between the United States and China—has received growing attention, with most research focused on its current drivers. We instead draw on history to explain why decoupling occurs, showing it is not unprecedented. The US has previously severed ties with Britain, Germany, Japan, the USSR/Russia, and earlier Chinese regimes. Through a comparative historical analysis grounded in a model of political-economic complementarities, we argue that current complementarities deter decoupling, while historical ones create path dependencies that enable future recoupling—even after war. Our findings suggest decoupling is not necessarily permanent and may give way to renewed coupling under favorable conditions.

Original languageEnglish (US)
Article number101648
JournalJournal of World Business
Volume60
Issue number5
DOIs
StatePublished - Aug 2025

Keywords

  • Government decoupling
  • International business
  • Net economic advantages
  • Net political advantages
  • Path dependence;History
  • Political-economic complementarities
  • US-China relations

ASJC Scopus subject areas

  • Business and International Management
  • Finance
  • Marketing

Fingerprint

Dive into the research topics of 'Divorce or temporary separation? Lessons from the US's history of decoupling with China and other nations'. Together they form a unique fingerprint.

Cite this