China's role in the world's supply chain is in trouble

Epoch Times:

The COVID-19 pandemic is going to have serious implications for how businesses think about China. Souring sentiment against the Chinese communist regime over the past few weeks may force many corporate boards to alter their whole supply chains in a very short time.

There will be a “forced decoupling” from China, meaning cutting off economic ties for national and strategic reasons, according to Kyle Bass, hedge fund manager and founder of Hayman Capital Management.

“The misery that China has brought to the rest of the world with this virus has really been shining a disinfecting light on global supply chains,” Bass said, in an interview for The Epoch Times’ “American Thought Leaders” program.

“Think about this, we have Western democracies relying almost completely on a supply chain in a totalitarian, communistic nation. It’s actually insane when you lay it out like that.”

If there’s a silver lining to this pandemic, Bass notes, it will be the acceleration of the decoupling.

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There is more.

Some US states have already filed suit against the Chinese government to recover the cost of the pandemic.  Companies with contracts in China might have a tougher time decoupling, but there is now an incentive to repatriate businesses from China, and Countries like Japan are paying their businesses for the move.