What Is Friendshoring?
The US secretary of treasury has pushed for “friendshoring” to diversify trade away from countries that are present at geopolitical risk.
- 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”.
- Friend-shoring or ally-shoring has become a means for the US to influence firms to move their sourcing and manufacturing sites to friendly shore 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 nation.