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. …read more
Source:: German Institute for International and Security Affairs