Supply Chains Grow More Complex But Still Rely on China Despite Diversification Efforts
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Supply chains have grown longer and more complex, not shorter as hoped. American and Chinese firms are now farther apart in supply chains than before.
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Rather than eliminate China, American firms now use traders in Asia as intermediaries between them and Chinese suppliers.
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Supply chains now have more steps, concealing that products still mostly originate from China.
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True diversification away from China has shown no progress. Firms now depend on fewer suppliers overall.
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Despite rhetoric about reducing reliance on China, America's new supply chains still lead back to China.