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Economic interdependence is traditionally viewed as an essential contributing factor to peace and cooperation in international relations. However, in an era of rising geopolitical competitions, broader economic ties might also become a new source of tensions and conflicts. This paper will analyze how rising competitions are shaping economic and technological ties between the U.S. and China. Decoupling will reduce economic efficiency and productivity for the world economy. However, both governments cannot ignore national security concern and domestic political pressure. Complete decoupling might be still less likely because it will be too costly for both economies. But partial decoupling is already happening.