Global supply chains lengthen as USChina decouple, derisk
Global supply chains are becoming longer as companies have fewer direct links with overseas suppliers. This trend, known as "regionalization" or "deglobalization," was identified by economists at the Bank of International Settlements. While the distance between manufacturing firms has increased, indicating more indirect links in supply chains, the overall density of the network has not changed significantly. China remains a key location for manufacturing, but companies like Apple are diversifying production and suppliers toward India and Vietnam. Chinese President Xi Jinping has announced the removal of restrictions on foreign investment in the manufacturing sector.
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Frequently Asked Questions
Q1: Are global supply chains lengthening due to the US-China decoupling and de-risking?
A: Based on the available search results, there is no specific information stating that global supply chains are lengthening as a result of the US-China decoupling and de-risking. However, it can be inferred from the remarks made by President Biden, Secretary of State Blinken, and National Security Advisor Jake Sullivan that the US is looking to de-risk and diversify its relationship with China, rather than completely decoupling from it.
Q2: What is the discussion around the risks and vulnerabilities of global supply chains in relation to China's economic growth and the US-China trade war?
A: Some experts argue for de-risking rather than decoupling from China in order to mitigate the risks and vulnerabilities associated with global supply chains. However, the direct impact of these measures on the lengthening of global supply chains is not explicitly mentioned in the available search results.
Q3: How can I get a more comprehensive understanding of the relationship between global supply chains, the US-China decoupling, and de-risking?
A: To gain a more comprehensive understanding, it may be helpful to consult additional sources or articles that specifically focus on the topic of the relationship between global supply chains, the US-China decoupling, and de-risking.