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Friendshoring

  • February 26, 2023
  • Posted by: OptimizeIAS Team
  • Category: DPN Topics
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Friendshoring

Subject: International Relations

Section :Msc

Concept:

  • Terming India the biggest trading partner, U.S. Treasury Secretary pitched for advancing an approach called “friendshoring” to bolster the resilience of supply chains.

Friendshoring

  • Friendshoring is a strategy where a country sources the raw materials, components and even manufactured goods from countries that share its values.
  • The dependence on the countries considered a “threat” to the stability of the supply chains is slowly reduced.
  • It is also called “allyshoring”.
  • For the US, Russia has long presented itself as a reliable energy partner, but in the Ukraine war, it has weaponized the gas against the people of Europe.
  • It’s an example of how malicious actors can use their market positions to try to gain geopolitical leverage or disrupt trade for their own gain.
  • Friend-shoring or ally-shoring has become a means for the US to influence firms to move their sourcing and manufacturing sites to friendly shores—often back to the same shores in the case of the US.
  • The purpose of Frienshoring is to insulate countries’ supply chains from less like-minded nations, such as China in case of the US.
Friendshoring International Relations

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