The US remains highly dependent on Chinese supply chains throughout the resourcing phenomenon that has occurred in the past few years accelerated by the covid situation in China and around the world.
Vietnam and Mexico have emerged as major destinations for an ongoing supply chain reconfiguration and foreign direct investment. As supply chain manufacturing moves out of China, Vietnam and Mexico are key replacement destinations.
Read more by Hinrich Foundation HERE.
China's changing business strategies and Sino-US geopolitical issues including sanctions and tariffs are crucial factors driving global businesses to resource within and across supply chains for a variety or products.
In the past few years, 'China Plus One' came into play as companies manufacturing in China looked at a 'plus one' alternative location for manufacturing. In the past few years, some companies have even started to leave China.
That isn't so easy, and sometimes the 'grass looks greener' in another country when the reality is much more challenging.
Many of these issues are considered in the article linked above.
The author... Henry Storey... is a senior analyst at Dragoman, a Melbourne-based political risk consultancy. He is also a regular contributor of The Interpreter published by The Lowy Institute.
The Hinrich Foundation is an Asia based philanthropic organization that works to advance mutually beneficial and sustainable global trade. They are a member of Global Chamber.
Global Chamber® is a growing, nurturing and innovative community of CEOs, executives, and leaders in 525 metro regions and 195 countries around the world, everywhere. We're the only chamber of commerce in hundreds of locations that simply and proactively connects exporting, importing, investing and growing member organizations to clients, partners, projects, investors and resources anywhere through warm introductions, events and more.
Global Chamber® is a registered trademark of Global Chamber, LLC since 2014
Originally published at https://www.globalchamber.org/blog/2023/11/13/global-chamber/mexico-and-vietnam-in-the-global-supply-chain-reshuffle/
