Geopolitical Alliances Heavily Influence Recent Supply Chain Shifts

Policymakers and businesses increasingly view trade through a geopolitical, multilateral, and supply chain security lens. Our latest research reveals that in the last year alone, geopolitically close countries have seen a 6.2% increase in trade. In contrast, the length of supply chains between Chinese suppliers and US customers has increased by 10% from 2021 to 2023.

To thrive in today's new macroeconomic regime after two decades of globalization and deregulation, companies must proactively monitor and balance their exposure to higher-risk trade flows.

Trade is tilting toward geopolitically friendly countries, with a more than 6% increase since 2022.