Breaking up is hard to do. Breaking up with the world’s manufacturing superpower apparently costs $13.7 trillion.
A new analysis from EY-Parthenon calculated that the United States alone would need to invest $13.7 trillion over the next 25 years to effectively stop relying on China in highly exposed sectors. The total bill for the US, Eurozone, and UK combined comes to $23.6 trillion, a figure that economists involved in the study described as “astronomical” and, in some cases, “completely unrealistic.”
What $13.7 trillion actually looks like
The investment would need to span manufacturing buildouts, infrastructure development, research and development, software capabilities, transportation networks, and workforce training. America would essentially need to rebuild entire industrial ecosystems from scratch in sectors where China currently dominates.
The timeline stretches to 2050, giving policymakers a 25-year runway.
