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Supply Chains May Be Moving Out of China but Not Really Decoupling

China to account for less than half of low-cost US imports from Asia

Kearney, the Chicago-based management consulting firm, says US efforts to reduce reliance on China, as well as price-sensitive American buyers, are driving trade towards lower-cost alternatives in Asia.

Geopolitics cause companies to consider production outside of China

One of China’s biggest water-heater manufacturers said its US clients had demanded it move production out of China in response to rising geopolitical tensions, reports the Financial Times. Lu Yucong, chair of Guangdong Vanward New Electric, blamed American and European protectionism for the shift. The move highlights how not just foreign companies but also Chinese…

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