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How Did China’s COVID-19 Shutdown Affect U.S. Supply Chains? — Sebastian Heise

Summary:
Based on data for the first four months of 2020, this post shows that U.S. imports from China declined sharply in February and March, before bouncing back in April. The decline was partially offset by growing imports from countries outside of China, such as Vietnam, India, and Bangladesh. As perhaps could have been expected, firms with established supply chain relationships in these countries benefited the most from the disruptions in China. Those reliant on China were largely unable to find suppliers in other countries on such short notice. Additionally, large U.S. importers were more likely to continue relationships with their Chinese suppliers during the shutdown than small importers were.... Resilience based on redundancy.FRBNY — Liberty Street EconomicsHow Did China’s COVID-19

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Based on data for the first four months of 2020, this post shows that U.S. imports from China declined sharply in February and March, before bouncing back in April. The decline was partially offset by growing imports from countries outside of China, such as Vietnam, India, and Bangladesh. As perhaps could have been expected, firms with established supply chain relationships in these countries benefited the most from the disruptions in China. Those reliant on China were largely unable to find suppliers in other countries on such short notice. Additionally, large U.S. importers were more likely to continue relationships with their Chinese suppliers during the shutdown than small importers were....
Resilience based on redundancy.

FRBNY — Liberty Street Economics
How Did China’s COVID-19 Shutdown Affect U.S. Supply Chains?

Sebastian Heise
Mike Norman
Mike Norman is an economist and veteran trader whose career has spanned over 30 years on Wall Street. He is a former member and trader on the CME, NYMEX, COMEX and NYFE and he managed money for one of the largest hedge funds and ran a prop trading desk for Credit Suisse.

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