Limits to supply chain diversification

Emerging trends demonstrate intensification of indirect supply chain integration with China

The supply chain agreement signed earlier this month by all 14 Indo-Pacific Economic Framework (IPEF) member countries within 18 months of its launch is commendable. Recent systemic shocks and geopolitical events have caused major disruptions in supply chain operations, with consequent impacts on the flow of goods and services, including essential commodities like food and medicines. Preventing disruptions and ensuring supply chain resilience is, therefore, an important objective for most developed and developing nations. 

The agreement aims at establishing three new bodies: The IPEF Supply Chain Council, a supply chain crisis response network, and a labour advisory board. The Council will