Showing posts with label supply chains. Show all posts
Showing posts with label supply chains. Show all posts

Tuesday, April 14, 2026

The US Supply Chain Shakeup away from China before and After President Trump's Tariffs, in Five Charts

Very recommendable! Apparently, US companies have already significantly diversified their supply chains away from China before President Trump's second term.

The research study is in so far flawed as it was already published in November of 2025 (revised April 2026), which means it is able to evaluate only a very few months of foreign trade data since President Trump imposed new tariffs on 4/2/2026. Probably, to little data!

"Last year’s US-imposed tariffs sped up significant trade shifts—toward Mexico and away from China—that began years earlier and have diversified American imports among top partners.

While the Trump administration’s major tariff announcement on April 2, 2025, was billed as “Liberation Day,” research by Harvard Business School ... suggests that companies were already positioned to adjust to the levies. The recalibration of supply chains has been so profound that US imports from China have returned to near-2001 levels, when the country entered the World Trade Organization. ..."

From the abstract:
"This paper documents stylized facts about the “Great Reallocation” in US supply chain trade following the 2018–2019 tariff shocks and the April 2025 Liberation Day announcements.
We find that:
(i) The US has decoupled from China but not from the world overall.
(ii) US imports diversified mainly among its top-20 partners, rather than expanding to new source countries.
(iii) Local linear projections confirm ongoing declines in China’s import shares, with compensating increases from Vietnam, Mexico, and Taiwan.
(iv) Most of this shift occurred along the product-level intensive margin, though extensive margin adjustments became more pronounced for Vietnam and India from 2021-2024.
(v) After a period of “wait and see”, the decline in import shares from China spread to contract-intensive and relationship-sticky goods by 2021-2024.
(vi) Trade reallocation has already accelerated after Liberation Day, in favor of trade partners facing lower additional tariffs and with geographically proximate supply networks.
Together, these findings show that the US-China tariff shocks have unwound the US’ sourcing from China back to where it stood at the time of China’s WTO accession."

The US Supply Chain Shakeup After Tariffs, in Five Charts | Working Knowledge "Research ... documents how US imports have shifted away from China and toward Mexico and other top partners."

Wednesday, March 11, 2026

Ukraine is slashing its reliance on Chinese components in drone production

How much are other, Western countries dependent on Chinese components for drones?

"Ukraine is slashing its reliance on Chinese components in drone production, boosting domestic manufacturing as drones dominate the battlefield. Ukrainian-made drones now account for more than 90% of Russian battlefield losses, with Chinese parts dropping to just 38% of components, down from near-total dependence in 2022." (Kyiv Post)

Disclaimer:
I am currently blogging from behind the Great Firewall of China.
My Internet service in China is very spotty. Thus, I am not able to blog as usual.

Tuesday, October 07, 2025

The US imports a large share of antibiotics and antibiotic active ingredients from China and India, but import prices fell dramatically

Food for thought! Is this international division of labor acceptable! How large is the risk of dependency or the supply chain vulnerabilities?

"The U.S. has become increasingly reliant on other countries for antibiotics over the past several decades, per a new analysis by Johns Hopkins University researchers that shows that China supplies more than 60% of the active pharmaceutical ingredients U.S. antibiotics manufacturers need—and, since 2020, nearly a third of the finished antibiotics imported by the U.S. come from India. CIDRAP "

"... The authors of the study say the findings suggest the United States, which already faces persistent drug shortages and is no longer able to domestically produce key antibiotics such as penicillin and doxycycline, is becoming overdependent on other countries for its antibiotic supply and highly vulnerable to supply chain disruptions that could affect public health. ..."

From the key points and abstract:
"Key Points
Question
Where do antibiotics for the US market come from?

Findings
This cross-sectional study analyzed 1992 to 2024 antibiotic importation records and found 50 originating countries of finished dosage forms and 52 countries for active pharmaceutical ingredients as well as a significant increase in annual antibiotic imports and a decrease in importation prices. In the past 5 years, India was the leading originating country for finished dosage forms, with China as the leading originating country for antibiotic active pharmaceutical ingredients.

Meaning
US relies on diversified global sources for antibiotic drugs but primarily on China for antibiotic active ingredients; policies to strengthen domestic production and diversify sourcing are critical to mitigate supply chain vulnerabilities.

Abstract
Importance  The US has faced persistent antibiotic shortages over the past decade, compromising patient care, public health, and national security. Understanding the global sources of US antibiotic imports is critical to inform policies to improve supply chain resilience.

Objective
To identify the global sources of US antibiotic imports, focusing on finished dosage forms (FDFs) and active pharmaceutical ingredients (APIs) between 1992 and 2024.

Design and Setting
This cross-sectional study of US antibiotic importation records used data from USA Trade Online from January 1992 to July 2024. Data included import volumes, costs, and the originating country.

Main Outcomes and Measures
Trends in annual import volumes for antibiotic FDFs and APIs (metric tons), spending and price per kilogram (inflation-adjusted dollars), and market concentration measured by the Herfindahl-Hirschman Index (HHI). An HHI less than 1500 indicates an unconcentrated (ie, competitive) market, 1500 to 2500 indicates a moderate concentration, and greater than 2500 indicates high concentration.

Results 
The final sample included 50 FDF-originating countries and 52 API-originating countries. Compared with the annual volume of US antibiotic FDF imports in 1992, the annual volume in 2024 increased 2595.0%, while the annual volume of API imports remained relatively stable.
Mean inflation-adjusted importation prices for FDFs decreased from $1836.03 per kg in 1992 to $177.44 per kg in 2024.
For APIs, mean prices decreased from $351.74 per kg in 2003 to $65.69 per kilogram in 2024.
From 2020 to 2024, India was the leading originating country for FDFs (31.9% of the total imported volume and 18.2% of the total imported cost), followed by Italy (13.4% of the total volume and 22.4% of the total cost).
China was the leading originating country for APIs (62.6% of the total imported volume and 28.7% of the total cost), followed by Bulgaria (16.1% of the total volume and 3.8% of the total cost). Italy was the originating country for 2.6% of API imported volume but accounted for 27.9% of the importation costs.
HHI revealed that FDF importation has become unconcentrated since 2020 (HHI, 1500-2500), while API importation markets are highly concentrated (2024 HHI, >5000).

Conclusions and Relevance
This study found that US antibiotic importation relies on diversified global sources for FDFs but primarily on China for APIs. Policies to strengthen domestic production and diversify sourcing are critical to mitigate supply chain vulnerabilities. Improved traceability and targeted strategies for specific antibiotics are recommended to safeguard public health and national security."

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US relies heavily on China, other nations for antibiotics



Figure 1.  Trends in Annual Antibiotic Importation Volume, Spending, and Price, 1992 to 2024


Figure 2.  Annual Antibiotic Finished Dosage Form (FDF) and Active Pharmaceutical Ingredient (API) Importation Volume by Originating Country From 1992 to 2024


Sunday, November 24, 2024

Saturday, February 17, 2024

China: Global carmakers Complicity in tainted Supply Chains. Really!

To track the provenance of every part at every step that goes into vehicle is very challenging and expensive!

"Global carmakers, including General Motors, Tesla, BYD, Toyota, and Volkswagen, are failing to minimize the risk of Uyghur forced labor being used in their aluminum supply chains, Human Rights Watch said in a report released today. ..."

Global Health NOW: The Fight for an FGM-Free Future; The NFL’s CTE Neglect; and a Virus Spread by Biting Midges

China: Carmakers Implicated in Uyghur Forced Labor BYD, GM, Tesla, Toyota, VW Risk Using Tainted Aluminum

Monday, January 08, 2024

Japanese scallops to be processed in Vietnam after China ban

More supply chains are going away from and around China! This may sound puny and who cares, but it seems to be a larger trend in progress.

The more the aging dictator Xi Jinping (age 70) apes Mao, the more China looses as the memories of the great reformer Deng Xiaoping (1904-1997) fade away.

Japanese scallops to be processed in Vietnam after China ban - Nikkei Asia Sellers eye lower-cost labor as inventory builds amid domestic worker shortage



Thursday, October 05, 2023

Delta, Southwest Search for Jet Engine Parts Sold With Forged Safety Records

This is very serious stuff! Minimum sentence for this kind of crime (similar to forging of medications) ought to be life in prison with no pardon.

"The biggest U.S. airlines are searching for thousands of jet-engine parts with fake safety certificates that were installed on their planes, an unusual incident that highlights the complexity and risks in the aerospace global supply chain."

"The questionable components—from simple nuts and bolts to turbine blades—have been found on 126 engines so far. A lawsuit filed by General Electric and its engine partner Safran accuses AOG Technics, a little-known broker that acquires basic parts and sells them to maintenance and repair organizations, of document falsification. An attorney for the components middleman declined to comment on the continuing legal matter. The U.K.-based firm was established in 2015 and currently lists an address that is a co-working space near Buckingham Palace, public records show."

Delta, Southwest Search for Jet Engine Parts Sold With Forged Safety Records - WSJ Engine makers claim that a small broker sold spare parts that found their way onto at least 126 jet engines

Friday, January 14, 2022

How Companies Are Overhauling Supply Chains to Ease Bottlenecks

Recommendable! Good news! Less dependence on production in Asia (specifically China) by distributing it more across regions and continents!