[quote=FlyerInHi]I agree but it’s not in our interest to cut off China either. Too late for that. We are now interdependent.

Devaluation will cause capital flight, but also new FDI. I have a Chinese friend who is investing/parking money in US apartments. He got $1/2 million out recently. But the money will flow back especially from Thailand, Malaysia, whatever, if the currency weakens. [/quote]

Actually it won’t flow back, because typically SE Asian currencies follow each other in devaluation. Still somewhat theoretical at this point.

I don’t know about that interdependence. If this goes on another 5 years, US-China trade will probably be 10% of where it is today. And that allows for a strategic segregation of economy, technology, etc.

Let’s say US wanted to really stop European trade with China, e.g. could add aviation parts as export restricted to China -> Airbus couldn’t sell aircraft to China or even engines.