COVID-19 has reinforced a trend toward economic decoupling from China.Foreign companies operating in China face recurrent discrimination, mountingpressure from the US government to leave, and an understandable need todiversify supply chains geographically. There is also a growing desire in thebusiness community to create more resilient supply chains, in part by expandingoutside of China. This set of forces raises questions around the feasibility andbenefits of nearshoring or reorienting US supply chains to North America, andwhether or how that should be promoted.
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