About Friendshoring:
- ‘Friendshoring’- the term is shorthand for the practice of relocating supply chains to countries where the risk of disruption from political chaos is low.
- It is a strategy where a country sources the raw materials, components and even manufactured goods from countries that share its values. The dependence on the countries considered a “threat” to the stability of the supply chains is slowly reduced. It is also called “allyshoring“.
Problems with friendshoring
- Friendshoring may push the world towards a more isolated place for trade and reverse the gains of globalisation. It is a part of the “deglobalisation” process.
- While moving supply chains away from east Asia could increase security in the long run, an ill-conceived implementation of this friendshoring strategy could result in price hikes and a stronger China over time.
Source : Indian Express
Last updated on March, 2026
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