“We’re not looking to decouple from China. We’re looking to de-risk and diversify our relationship with China,” President Biden clarified before his departure after attending last week’s three three-day summit with other G7 leaders in Hiroshima, Japan.
Biden announced the G7 agreed to a united approach to China that called for diversifying supply chains to reduce dependence on one country. According to Reuters, Biden sees a shift in ties with China ‘shortly’.
Call it a de-coupling or de-risking, what is clear is that the reshoring job announcements are continuing to outpace recent records, claims the Reshoring Initiative, a US lobbying organisation. “If the current rate continues,” the organization added, “new job announcements will reach over 400,000 by year-end. The cumulative number of jobs brought back since the manufacturing low in 2010 would reach two million.”
“Supply chain gaps and the need for greater self-sufficiency set the stage for the current upward trend in reshoring. The risks of a Taiwan-China conflict or China voluntarily decoupling are focusing those concerns. Destabilizing geo-political and climate forces have brought to light our vulnerabilities and the need to address them,” said Harry Moser, Founder and President of the Reshoring Initiative.
“The current actions and momentum are a great start. A true industrial policy would accelerate the trend and increase U.S. manufacturing by 40%, 5 million jobs. Reshoring will reduce the trade and budget deficits and make the U.S. safer, more self-reliant, and resilient.”
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