Sourcing from China Amid a Pandemic and Trade War

Craig Seidelson

Professor Operations and Supply Chain Management at University of Indianapolis

Learning Objectives

The U.S. imported approximately $600 billion worth of products from China in 2020. Over half of these imports were capital goods used by U.S. manufacturers. Clearly, U.S. operations are heavily dependent on Chinese made goods. The same holds true for U.S. supply chains. Sixty cents of every dollar U.S. consumers spend on made-in-China goods go to the U.S. companies responsible for putting Chinese products into their hands. Counterbalancing the ongoing need for U.S.- China trade is the fact that relations between the two countries are at their lowest point since diplomatic relations were established in 1972. Successful supply chain managers need to develop new risk mitigation strategies when sourcing from China.

Key Takeaways:

  • Assume risk

  • Avoid risk

  • Transfer risk