The newly fashionable term, reflecting an evolution in the discussion over dealing with a rising, assertive China, has a vexing history in financial policy.

Title: The Art of De-risking: How 'Decoupling' From China Became a Game-Changer Over the last few years, the idea of "decoupling" from China has been making headlines across the globe. From politicians to economists, everyone has an opinion on how to deal with a rising, assertive China. While decoupling as a term has been around for a while, it has a vexing history in financial policy. However, we are now seeing a shift in the discourse towards "de-risking" – a relatively new but just as important concept that seems to hold the key to mitigating some of the challenges posed by China's growing power. Let's start by defining what we mean by decoupling. This refers to the process of reducing economic interdependence between countries. In other words, it is about decreasing the reliance of one country on the other, with the ultimate aim of protecting national security interests. China's growing power and influence have made many countries, especially in the West, concerned about their dependence on the country. However, decoupling is easier said than done. Cutting off economic ties with China threatens to disrupt global supply chains, cause significant economic losses, and limit access to critical products and services. Additionally, the global interconnectedness of the world means that some industries and countries are highly dependent on China, so reducing ties is easier said than done. This is where de-risking comes in. De-risking is about making strategic adjustments that reduce the risks associated with economic ties, without completely severing them. It involves a targeted and well-thought-out approach to diversification of supply chains, investment portfolios and partnerships. This shift in focus from "decoupling" to "de-risking" is a game-changer, and for good reason. While decoupling is seen as a blunt tool, unreliable in managing the complex realities of the global economy, de-risking is more nuanced, practical and flexible. It allows countries to navigate the inherent risks of engaging with China while still being able to tap into the benefits of their economic ties. In conclusion, de-risking is the way forward in managing economic ties with China. The strategy allows pragmatic and careful adjustments that can safeguard national security interests while avoiding the worst possible outcomes of decoupling. While it may not be the most buzzworthy term right now, it is undoubtedly the key to managing China's influence in the long run. The term "decoupling" has evolved into "de-risking" in discussions about dealing with an assertive China. This term has a complicated past in financial policy. (44 words)

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