Don’t be fooled by America’s “new” supply chains

DURING THE covid-19 pandemic, sudden shortages taught businesses and policymakers a costly lesson. Many hoped that shorter, more diversified supply chains would insulate them against the next shock. Russia’s war in Ukraine and simmering tensions over the status of Taiwan have given further urgency to efforts to bring manufacturing . Global supply chains have indeed shifted (see chart 1). But a closer look suggests it has not been in the way that governments had hoped.