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WSJ — Business — Supply Chain — Economy — Trade — Globalization

China Dispatch: Complexities of Decoupling Supply Chains

Decoupling from China's supply chains is complex and varies by sector and company, driven by factors such as China's economic growth, labor supply, and infrastructure investment.

1 min read
  • China's supply chain coupling relationships vary by sector and company, making decoupling difficult.
  • Factors that drove coupling included China's economic growth, infrastructure investment, and a massive supply of labor.
  • Coupling relationships ranged from manufacturing for Mainland consumers to exporting under brands to the world.
  • Decoupling options include 'China-for-China', 'China +1', and complete decoupling.
  • Decisions on decoupling require close interaction of C-suite executives across finance, supply chain, engineering, marketing, and government relations functions.
China Dispatch: Complexities of Decoupling Supply Chains
As leaders at multinational corporations study evolving trade relations with China, a series of critical considerations involving coupling arrangements are needed at the commercial and industrial levels.
WSJDeloitte

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