Covid-19 may accelerate US firms’ turn away from China – New York Fed
Import data shows firms have used non-Chinese suppliers to replace some lost trade
The pattern of US importers reducing their reliance on Chinese suppliers is likely to be accelerated by the Covid-19 pandemic, a researcher from Federal Reserve Bank of New York suggests.
“[Covid-19] is likely to lead firms to consider bringing some critical activities back to the US or to set up back-up suppliers to reduce the firms’ exposure to any single supplier or country,” Sebastian Heise says in research published on May 12.
This may reduce efficiency in the short term, he says, but may
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