Assignment task:
De-globalisation is becoming a hot topic in political and business news and academic debates globally today (Hout, 2020; Witt, Li, Välikangas, & Lewin, 2021). While de-globalisation refers to the process of weakening interdependence among nations (Witt, 2019), the discussion of de-globalisation in recent years appears to be focused on decoupling the People's Republic of China (PRC) from the US-led global value chains (Financial Times, 2020; Hu, Tian, Wu, & Yang, 2021; Huang, 2019; Lee, 2020; Witt et al., 2021). The critics of PRC decoupling policies in the West argue that it will only benefit the PRC and will hurt the interests of Western businesses (Hout, 2020). However, the advocates for PRC decoupling often cite IP protection, national security concerns and the importance of maintaining a US-led order in globalisation (Layton, 2020). According to the realist view of globalisation, the prevailing rules and order in global governance and trade after World War II would survive only when a liberal, democratic and global hegemony such as the US holds an absolute power advantage over non-liberal and non-democratic challengers such as the PRC.
While the debates about the US-PRC decoupling are divided depending on ideology, nationality, economic interests and social and cultural lenses, the impact and implications of the US-PRC decoupling for companies participating in global value chains (GVCs), especially in high-tech industries (e.g. semiconductors), are real and significant (Chad, 2020; Layton, 2020; Wang & Lin, 2021). The GVC built conventionally over the past few decades on national policies of international collaboration and theories of comparative advantages is being challenged in the recent US-led decoupling from the PRC (Bermingham, 2020).
Evaluate the causes of US-PRC decoupling in the global semiconductor industry (e.g. national security or geopolitical power concerns; why?).