China Derisking Is Inevitable. To Minimize the Pain, Supply Chains...

China Derisking Is Inevitable. To Minimize the Pain, Supply Chains Need a Revolution.

Posted 2023-09-06 15:35:01

China is becoming “uninvestable” for many U.S. companies. So said U.S. Commerce Secretary Gina Raimondo during her visit to China last week.

The numbers back up this claim. Total U.S. venture capital investment in Chinese startups has fallen from $32.9 billion in 2021 to $1.2 billion so far this year. The Biden administration’s new limits on U.S. tech investment in China are likely to push that number even lower.

The exodus of U.S. investors from China signals a definitive shift in global supply chains that was previously called “decoupling,” but is now more commonly referred to as “derisking.” This shift manifested itself briefly in the aftermath of the Trump administration’s trade war with China, but waned after the outbreak of the Covid-19 pandemic.

Please log in to like, share and comment!

Sponsor