Western manufacturers will be able to de-risk their operations in China but will find it impossible to cut ties completely with the country, according to the head of one of the US’s largest aerospace and defence companies.

Greg Hayes, chief executive of Raytheon, said the company had “several thousand suppliers in China and decoupling . . . is impossible”.

“Think about the $500bn of trade that goes from China to the US every year. More than 95 per cent of rare earth materials or metals come from, or are processed in, China. There is no alternative,” said Hayes.

Submission Statement

I believe the executive in question is exaggerating the difficulty of decoupling. Chinese dominance in rare earths, for instance, has more to do with the cost of labor and compliance in that country as opposed to any fundamental disparity. However, the case remains that serious changes have to be made if the US wishes to seriously insulate itself from Chinese risk. This article speaks to that issue, as well as further struggles that American companies are having dealing with increasing tensions between the US and China.