We use cookies on this website. By continuing to use this site without changing your cookie settings, you agree that you are happy to accept our privacy policy and for us to access our cookies on your device.
Transcript/Script: APEC 2023 Friendshoring
HEADLINE: APEC Nations May Benefit From US-China Tensions
TEASER: As US companies seek locations outside China for manufacturing, many Asia-Pacific nations offer alternative locations with governments more friendly to Washington
PUBLISHED: 11/07/2023 at 5:40 p.m.
BYLINE: Jessica Stone
CONTRIBUTOR:
DATELINE: Washington
VIDEOGRAPHER:
VIDEO EDITOR: Chenny Yu Chen
ASSIGNING EDITOR: Martha Townes
SCRIPT EDITORS: KEnochs; Reifenrath
VIDEO SOURCES: MRT, Youtube, Reuters, VOA
PLATFORMS: WEB __ TV _x_ RADIO _x_
TRT: 3:09
VID APPROVED BY: KE
TYPE: TVPKG
EDITOR NOTES:))
((INTRO))
[[Many members economies of the Asia-Pacific Economic Cooperation bloc may profit as U.S. companies move production out of China under a practice known as “friendshoring.” VOA’s Jessica Stone explains what that means.]]
((NARRATOR))
For decades, China has served as the world’s factory, as recently as 2020 contributing nearly double the total manufacturing output of the United States. Low wages, a well-developed infrastructure and government support all contributed to its success.
Supply chain consultant Rosemary Coates says these days many CEOs don’t see China as a factory … but as a risk. And they’re willing to pay more to avoid it.
((Rosemary Coates, Blue Silk Consulting)) ((Zoom))
“Now, the executives that I'm working with not only look at dollars and cents, but they're evaluating global risk, geopolitical risk.”
((NARRATOR))
Coates says the combination of the pandemic supply chain disruption and Beijing’s zero-covid shutdowns has prompted some American executives to consider changing the way they look at manufacturing, choosing to work with countries that have a solid allied relationship with the U.S.
(GFX show APEC map)
It’s a trend, known as “friend shoring.” And it’s a policy taking root among some of the 21 members of the Asia-Pacific Economic Cooperation, or APEC.
(GFX: Bloomberg chart of US apparel imports—make sure source [Bloomberg] is on graphic)
Bloomberg data shows that cost-conscious U.S. apparel-makers started moving out of China into Vietnam, Bangladesh and Indonesia even before trade tensions with Beijing began in 2017. In the CHIPS Act of 2022, the Biden administration offered $500 million over five years to help modernize and secure new semiconductor supply chains.
((Janet Yellen, US Treasury Secretary))
((Courtesy: Asia Society (there’s already a watermark FYI))
“We’re starting to see the impacts in the data. Across sectors from auto parts to electronics, the U.S. is importing more from key partners like India and Vietnam, as well as from Mexico, and is less dependent on one single country, in this case, China."
((NARRATOR))
((Courtesy: Youtube Bug + Amkor))
Last month, semi-conductor maker Amkor Technology announced a new test and assembly plant in Vietnam.
((Courtesy: Youtube bug + Synopsys))
Likewise, Synopsys and Marvell have announced new semiconductor design centers there.
Shoemaker Nike has also steadily shifted production from China to Southeast Asia for the past decade.
Matt Pottinger, deputy national security adviser during the Trump administration, says it’s the culmination of decades of US investment in the region.
((Matt Pottinger, Former US Deputy National Security Adviser))
“The United States is deeply invested to the tune of well over a trillion dollars in in that stock of investment that that has occurred over, over decades now.”
((NARRATION))
But trade analyst Steven Okun says not all of China’s neighbors are ready to welcome US companies and their factories.
((Steven Okun, APAC Advisors CEO))
"You may want to diversify out of China. You may want to say, 'I want to make my supply chain more resilient,' but where are you going to go, because you can’t take all of China and put it into Vietnam. You can’t put it into Indonesia. You can’t put it into India, So you are going to see some certainly some diversification to create these resilient supply chains, but there are natural checks on how much that can happen."
((NARRATOR))
After all, say trade analysts, China has spent years building its infrastructure, labor pool, and regulations to become the world’s factory. And it’s still the best place to make things for the Chinese market.
((Jessica Stone VOA News))
NewsML Media TopicsArts, Culture, Entertainment and Media
NetworkVOA
Location (dateline)
Washington D. C.
Embargo DateNovember 7, 2023 18:35 EST
Byline
((Jessica Stone VOA News))
Brand / Language ServiceVoice of America - English
