Supply-Chain Decoupling From China Gets Sharper Teeth

Covid-19, Russia’s invasion of Ukraine, and rising geopolitical risks in Asia have thrown a wrench into global supply chains. That has reinvigorated the push to put key links back onshore—particularly those currently located in manufacturing juggernaut China.

A full “decoupling,” meaning the breaking of economic links with China, remains unlikely, but supply chains would become less integrated than in the past. That would have significant consequences for both businesses and consumers—and probably for long-run inflation expectations as well.

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