Companies will shift supply chains away from China after coronavirus crisis, Mark Mobius predicts

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Companies around the world will alter their supply chains to be less dependent on China in the wake of the coronavirus crisis, according to investor Mark Mobius.

Speaking to CNBC's "Street Signs Europe" on Tuesday, Mobius, founder of Mobius Capital Partners, said the pandemic was already prompting a rethink among businesses as they sought to mitigate supply shocks from any future events of a similar scale.

"A lot of buyers and a lot of the people depending on the supply chain in China are now having second thoughts, and are beginning to diversify their supply chain as much as possible to be closer to home," he said. Mobius noted that in the United States, there would "of course" be a preference for companies based in the U.S., or in more local overseas markets like Mexico or Canada.

"But at the end of the day, I think there's going to be a diversification where these supply chains get moved into places like Vietnam, Bangladesh, Turkey, even Brazil, so that these companies can have a more diversified supply chain," he added.

 

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actually Joe Accetturo predicted that first. But he has no Twitter following...

That's great! If that's what it takes!

Hope at least this time world will make move which they ignored previously ..

Most companies were already shifting due to the extra $$ the tariffs were causing. This seems like a story trying help lay blame and punishment for non china manufacturing.

Says the guy who doesn't know how the sausage is made. I've been designing electronics since the 70's. Try to design ANYTHING electronic OR mechanical using USA only parts. In WWII we were reliant on foreign material and brainpower. Got Chromium, Tin...etc? British sent troops..

No, they won't. The allure of that cheap, cheap labor will always keep them there.

Why did Pompeo send them to China in the first place? In. February.

Not easy to do. China has become very knowledgable and well run. Plus Alibaba, Tenscent, Huawei, Baidu etc are huge now.

And they should. Part of the problem we have in the USA is that many of the things we need for COVID is being made overseas and everyone overseas needs that same equipment. Make it in USA, use it in USA.

I wonder what Ivanka will do with all her Chinese trademarks! Like the one on voting machines she was approved for.

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Source: BusinessInsider - 🏆 729. / 51 Read more »