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How to “Friendshore”
“Friendshoring”―the relocation of manufacturing, supply chains, or both away from China and other geopolitically risky countries to friendlier ones―has become a much-desired objective for Western companies.
Since countries that could benefit from friendshoring will not be able to replicate China’s advantages, they should team up with one or more neighbors to offer prospective friendshorers combined solutions.
The solutions should include convenient logistics (including across borders); easy-to-handle taxation and tariff rules, including for components crossing borders several times; and the removal of red tape.
Friendshoring companies should clearly communicate their plans, as Western customers and the wider public are likely to strongly support such moves. They should also seek advice from manufacturers that have moved production from China in recent years (for practical rather than geopolitical reasons).
Since countries that could benefit from friendshoring will not be able to replicate China’s advantages, they should team up with one or more neighbors to offer prospective friendshorers combined solutions.
The solutions should include convenient logistics (including across borders); easy-to-handle taxation and tariff rules, including for components crossing borders several times; and the removal of red tape.
Friendshoring companies should clearly communicate their plans, as Western customers and the wider public are likely to strongly support such moves. They should also seek advice from manufacturers that have moved production from China in recent years (for practical rather than geopolitical reasons).
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