Reshaping of global supply chains will take place, but it will not happen fast

The COVID-19 pandemic has drawn attention to high dependence of industrialized countries on Chinese suppliers and led to calls for increasing resilience through diversification of supply sources. Beata Javorcik argues that geographic reshaping of global value chains will require substantial flows of foreign direct investment. As such flows are projected to remain subdued in the next few years, reshaping of global value chains will not happen very fast.

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Image courtesy of interviewee

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