Yesterday The Epoch Times posted an article reporting that American companies are moving away from relying on China as a single supplier.
The article reports:
The U.S.–China trade war and the COVID-19 pandemic have forced companies to reduce their excessive dependence on China as a single supplier.
U.S. brands have started to explore sourcing options closer to home, with Latin and South America gaining significant traction in recent months, according to a survey by Qima, a Hong Kong-based supply chain inspection company.
The survey conducted in July among more than 200 businesses around the world found that respondents are increasingly moving their sourcing away from China. Ninety-three percent of U.S. respondents reported that they had plans to further diversify their supply chains. Meanwhile, less than half of EU respondents had a similar strategy.
The article notes that China is rapidly losing ground as the primary supplier of goods in the world:
For example, 75 percent of respondents globally named China among the top 3 sourcing geographies this year, compared to an overwhelming 96 percent in 2019.
The article concludes:
President Donald Trump pledged to end U.S. reliance on China and bring back 1 million manufacturing jobs in his second term. He recently proposed providing tax credits and allowing “100 percent expensing deductions for essential industries like pharmaceuticals and robotics” to incentivize companies to produce in the United States.
Trump also signed an executive order on Aug. 6 to ensure that essential medicines, medical supplies, and equipment are made in the United States.
Former Vice President Joe Biden, the Democratic nominee, also pledged to “bring back critical supply chains.” He promised to “bolster American industrial and technological strength and ensure the future is ‘made in all of America’ by all of America’s workers.”
In the past two decades, China has become a crucial global supplier. According to the United Nations, China accounts for nearly 20 percent of global trade in manufacturing intermediate products, up from 4 percent in 2002.
It is interesting that former Vice President Joe Biden has also pledged to “bring back critical supply chains” when the policies of the Obama administration sent manufacturing and product sourcing to China. I don’t know if that pledge represents an understanding of the mistakes made during the Obama administration or is simply a politically expedient platitude.