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.