When manufacturing giants from across the world are executing strategies like China Plus One and Minus China, there comes a statement from the ‘golden dragon’ that their actions may, in fact, hamper global supply chains. The governor of China’s central bank’s governor said last week that such ‘friend-shoring’ attempts could prevent global supply chain tension from easing.
“The global economy is facing increasing downward pressures. Despite an overall easing of supply chain tensions, they continue to be challenged by protectionist measures such as onshoring, nearshoring, and friend-shoring,”Yi Gang, Governor of the People’s Bank of China
As the US added 12 businesses from China to its export-control list, the latter’s Commerce Ministry propagated that US sanctions on Chinese companies will adversely affect the stability of the global supply chain. They said that the US’ decision to add Chinese businesses on its ‘entity list’, was not supported by the United Nations.
Also Read: Globalization resilient even as U.S.-China decoupling advances: Report
The reason cited by Washington was the allegations that these distributors of electronic components from Shenzhen and Hong Kong, support Russia’s military and defence industries. The US also added firms from Russia, Singapore, Spain, Syria, Turkey, the United Arab Emirates and Uzbekistan to this de-facto list.
Ultimately, the US and other western nations are working towards reducing their dependence on China, which is also a way to show their disagreement towards China’s efforts to take over Taiwan. The pandemic, its after-effects on China’s manufacturing industry, and the ongoing geo-political conditions in Asia and Europe, have collectively pushed further the idea of nearshoring and reshoring to countries like India, amid the West.