As countries and firms increasingly seek ways to strengthen the resilience of their supply chains, this paper studies … the global economic costs of a decoupling of global supply chains along geopolitical lines as well as in strategic sectors … across factors of production and input goods. We find that, in terms of welfare losses, the costs of decoupling are roughly …

technologies. We document that these measures prompted a broad-based decoupling of U.S. and Chinese supply chains. Once their …