Due to the difficulties caused by the pandemic, businesses intend to more actively withdraw their production from foreign countries.
Bank of America (BofA) experts have come to the conclusion that about $ 1 trillion will have to be spent by companies from the USA and the EU to withdraw their production from China.
“According to a survey conducted by BofA, 80% of global sectors have experienced supply chain problems due to the global coronavirus pandemic. In this connection, the business faced with these difficulties intends to more actively withdraw its production from foreign countries. According to experts, 75% of companies affected by supply disruptions are preparing for this, ” the Rosstrat portal reports.
In support of their forecast, experts also cite Donald Trump’s promise to provide tax breaks to companies that have returned their production facilities from China to the United States. According to the American president’s calculations, this should reduce the dependence of the US economy on supplies.