When the book How COVID-19 Changed Supply Chains is written, there will be chapters on reshoring—bringing manufacturing back to the United States—and nearshoring—bringing them closer to home. But I don’t think there will be a chapter titled How COVID-19 Ended China’s Manufacturing Dominance.
It’s true that for several years, the business and political drivers to move procurement and sourcing out of China have been increasing. After COVID-19 disrupted Chinese-made supplies of PPE, reliance on Chinese suppliers was portrayed as a critical strategic weakness. So, this is certainly an appropriate time for companies with suppliers in China to evaluate whether to reshore or nearshore parts of their supply chains.
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