This Julio Rivera article at American Thinker makes an interesting point about leaving China behind:
It’s no secret that tensions are escalating between China and the United States. The tensions have escalated into a trade war that has several companies worried about how the new tariffs will affect the supply chain with China. However, looking at the issue from a different perspective, this trade war could be a blessing in disguise. Being too reliant on China as a supplier can actually make American companies (and U.S. citizens) vulnerable to cyber operations by state-affiliated actors.
Background
Take a look at the items in your home and you’re likely to find a label on many that says it was made in China. Even if the product wasn’t built in China directly, many of the parts that went into producing it likely were. China has established itself as an essential supplier for several tech companies. Research shows that twice as many companies surveyed by the FM Global Supply Chain Risk Study (86% vs. 43%) relied more on China as a crucial part of their supply chain for key products than Japan. Furthermore, 83% of companies said that disruptions to the supply chain presented a great risk, while 95% of companies are concerned about what a natural disaster in China could mean for their supply chain.
Trade War Fears
A Trade War has become a significant concern for companies on both sides. American companies are particularly at risk because of how much they rely on Chinese companies. There is still a lot of uncertainty over the tariffs being placed on Chinese goods.
This has forced several companies to look for alternatives to Chinese suppliers. Some companies are using Vietnam and Taiwan as a replacement, while others are moving to Mexico or actually bringing production over to the United States. Analysis from the Japanese investment bank Nomura shows that companies would rather avoid the tariffs — and China as a whole.
Read more: American Thinker
Image credit: illinoisreview.com.
