What would happen (to the US economy) if China were to vanish?

Surprisingly little! Exports to China account for less than 1% of the US GDP. So if China were to vanish from the (economic) map, this would reduce the gross domestic product only by a percent or so. This does not even qualify as a recession. In fact, the recent downturn in China might actually benefit the US in a few different ways:

1. The slowdown in China should keep prices low for US consumers
2. The Chinese authorities’ shift in focus from fostering a manufacturing based economy to a service based one might provide a boost for US software and entertainment industries
3. There is likelyhood of more dollars filtering into the US as investment returns shrink in China

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