With many of my family and friends still in the US, and a network of clients across Europe I find myself fielding outlandish questions on a daily basis. It seems that many in the West have taken a negative view of China in light of the recent global crisis.
While I don’t share their sentiments, it does make me wonder whether these negative attitudes towards China will be harmful to trade.As we all know, China is nearly unbeatable as a sourcing partner. But…decoupling of supply chains from China has been going on for several years now. Costs have crept up and most of the larger manufacturers have set up factories outside of China.
However, many of these businesses are still handling some portion of their production in China. I don’t think you can really detach from China as the main supply chain for a lot of things. They simply do it better than most countries.
With this in mind, I don’t see short term negative attitudes impacting long term trade in a significant way. There will be a lot of talk about it from the West, and China will likely have to give a little to retain its revenues. But, I still don’t think Western companies are going to start manufacturing things at home any time soon.
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