Survey: Over 40% of multinational firms look to move production from China to more politically friendly countries
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Over 40% of multinational firms surveyed by the ECB plan to move production to more politically friendly countries due to risks related to China.
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49% of firms surveyed said they were looking to bring production closer to the point of sales (near-shoring) and 42% wanted to move operations to more welcoming locations (friend-shoring).
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China was cited by two-thirds of firms as posing a risk to supply chains and critical materials.
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The EU is likely to lose jobs and see higher prices as production moves out of the bloc.
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Friend-shoring is a new trend with only 11% pursuing it in the past 5 years compared to near-shoring.