Given the increased rivalry between the two countries and growing hostilities over many issues the countries cannot reconcile. U.S. and China will continue the path of reducing their dependence on each other in critical industries though this would involve higher costs to both sides. Economic decoupling has the potential to significantly impact both counties. The scale of investment by U.S. and other international firms in Chinese supply chain and distribution are so extensive, a wholesale relocation is not feasible. Many U.S. and Western companies are in China to compete for a share of the huge Chinese market. Divesting from China will have a significant and long-lasting impact on their bottom line.
Shooshtari et al. (Mon,) studied this question.