In 2022, Covid-related lockdowns in China hindered international trade in crucial medicinal supplies. The circumstances led to reevaluating the composition of global supply networks as well as geopolitical rivalry and macroeconomic constraints. According to the Hinrich Foundation, India may be included in the US’s new “friend-shoring” policy for the pharmaceutical sector.
National leaders no longer seem to believe in the logic of free trade as the world economy recovers from the Covid-19 pandemic, especially when it causes the concentration of essential supply chains of crucial businesses in certain geopolitically hazardous geographies.
Supporting the growth of supply chains in friendly countries is known as “friend-shoring,” and among US authorities it has emerged as a strategic shift away from the costs and alleged drawbacks of both uncontrolled foreign investment and the “onshoring” industries.