US-China relations are deteriorating as trade and investment disintegrate, leading to debates about economic 'decoupling' and deglobalization. The Covid-19 pandemic has exacerbated these differences and highlighted the ongoing decoupling between the two countries. Decoupling adds complexity to the global recession caused by the pandemic, creating a global leadership void. Both countries' perceived disregard for international norms has led to a trust deficit in international institutions. The restructuring of global value chains (GVCs) is also affected by political tensions, new technologies, and the emergence of competitive developing economies.