Michael A. Witt, INSEAD on the impact of a new cold war

We are clearly seeing evidence of withdrawal strategies being implemented, on both sides of the divide. Chinese foreign direct investment in the US seems to have dropped 73 percent last year alone. US and other Western firms are moving operations to other parts of Asia or to the Americas, following a new approach known as “ABC”: Anywhere But China. Such withdrawal will come at the expense of smaller reach and higher costs from foregone supply chain optimisation.
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Also read: https://voxeu.org/article/return-cold-trade-war-0 (2014)


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