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A new geopolitics of supply chains: The rise of friend-shoring

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  • Maihold, Günther

Abstract

A succession of disruptions to world trade have put the reorganisation of inter­national supply chains high on the political agenda. The difficulties began with the trade war between the United States and China, deepened with the Covid-19 pan­demic and culminated in the sanctions and export controls imposed by Western countries after Russia's invasion of Ukraine. The increased risk of interruption of supplies forces businesses today to price in political factors and respond to political demands. However, realistic timeframes for reconfiguring supply chains are largely incompatible with the rapid responses expected by political decision-makers, especially where chains are long and complex. A process needs to be developed for dealing more effectively with political supply chains risks. It should be transparent for all involved.

Suggested Citation

  • Maihold, Günther, 2022. "A new geopolitics of supply chains: The rise of friend-shoring," SWP Comments 45/2022, Stiftung Wissenschaft und Politik (SWP), German Institute for International and Security Affairs.
    • Handle: RePEc:zbw:swpcom:452022
    DOI: 10.18449/2022C45
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