Global supply chains – technically dubbed global value chains – have become weaponized in the economic battles of Covid-19. For the West, the target is China, a favorite scapegoat in a self-serving blame game. Japan has earmarked some ¥243 billion of its record ¥108 trillion rescue package to assist Japanese companies in pulling operations out of China, and Larry Kudlow, Trump administration economic policy chief, has hinted at similar relocation support for US companies.
The goal is threefold: Punish China for the coronavirus, eliminate a source of vulnerability in production lines of critical equipment, and bring back home, via reshoring, offshore platforms that have undermined and hollowed out domestic operations. While angst is certainly understandable as the world grapples with a devastating pandemic, these goals present the world with many risks….CLICK for complete article