Published 16 August 2022
Pandemic disruption, geopolitical shifts, and rising protectionism have prompted many businesses to consider friend-shoring. While “friend-shoring” has appeal, labor, environmental and political obstacles remain.
Many multinationals are considering shifting at least part of their operations out of China, and Southeast Asian nations are trying to attract their business. However, they are not a perfect substitute for China. Despite the rhetoric about friend-shoring, experts think only 10% to 20% of production might shift out of China. While the strategic geographical location of Southeast Asia, proximity to large markets like China and India, government investment in infrastructure, and the pro-free trade orientation of the governments tip the scales in the region’s favor, concerns around lack of skilled labor, and environmental violations remain. Watch this video for insights on realistic expectations from friend-shoring by two supply chain experts.
About the NPF International Trade Fellowship 2022
The National Press Foundation in collaboration with the Hinrich Foundation welcomed 22 Asia-based journalists to its International Trade Fellowship in Singapore last month. The five-day workshop, held at the Foundation’s offices in Singapore, touched on digital trade, trade agreements, and U.S.-China trade friction among other issues. The NPF International Trade Fellowship is part of an ongoing program of trade training for journalists and awards for trade coverage, sponsored by the Hinrich Foundation.
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