Ryan Beene of Bloomberg writes:
There has been a sense in financial circles that the fever among American executives to shorten supply lines and bring production back home would prove short-lived. As soon as the pandemic started to fade, so too would the fad, the thinking went.
And yet, two years in, not only is the trend still alive, it appears to be rapidly accelerating. ...
By and large, businesses are responding to the negative incentives that Xi Jinping’s government has given them. It seems that the Shanghai Covid lockdowns were a turning point for many executives. As I wrote in April, those lockdowns made clear that the Chinese Communist Party values its political power and ideology more than foreign business. To many observers, that was clear long before then, but anyone in denial could not deceive himself any longer.
