Signal India, Vietnam, Thailand and Mexico are named as beneficiaries of reduced dependence on China

Summary

This signal names the countries expected to gain from Western efforts to reduce dependence on China. According to the report, India, Vietnam, Thailand and Mexico may benefit because of their ample labour supplies and favourable geographic locations. This reflects the redistribution of manufacturing as firms and governments pursue friendshoring, nearshoring and diversification. The report nonetheless records skepticism about the economic viability of building more resilient supply chains. If these partners themselves rely heavily on Chinese exports, the result can be a net rise in indirect imports from China to the West. The signal thus shows both the opportunities and the limits of supply chain shifts.