In news– In her recent visit to India, the US secretary of treasury reiterated her country’s stance of pushing for “friendshoring” to diversify away from countries that present geopolitical risk.
What is friendshoring?
- 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”.
- The term, a cousin of “reshoring” and “onshoring” and a sibling to “nearshoring,” is shorthand for the practice of relocating supply chains to countries where the risk of disruption from political chaos is low.
- In the current case, US secretary of treasury said that Russia has long presented itself as a reliable energy partner, but in the Ukraine war, Vladimir Putin has weaponised the gas “against the people of Europe”.
- Some experts believe that friendshoring may push the world towards a more isolated place for trade and reverse the gains of globalisation. It is a part of the “deglobalisation” process.
Source: The Indian Express
