Western Nations Face Trillion-Dollar Challenge to Reduce China Dependence

According to EY-Parthenon, achieving a meaningful decoupling from China would demand an investment surge of $23.6 trillion over the next 25 years across the United States, the European Union and the United Kingdom. The analysis suggests $13.7 trillion for the US, $9.1 trillion for the EU and $800 billion for the UK, targeting the reconstruction of manufacturing plants, industrial infrastructure, research labs, software ecosystems, logistics networks and supply chains.

These figures are presented as the scale of funding required if policymakers truly pursue the goal of re-establishing capabilities now concentrated in China. The study does not claim the money will automatically be spent, but highlights the magnitude of the task compared with typical peacetime investment levels. It calls for a focus on resilience rather than outright disruption of global supply chains. The authors frame the proposal as a long-term strategic shift rather than an immediate policy change.