#1. U.S. and European firms face $1 trillion to relocate their Chinese supply chains
One of the consequences of COVID-19 is the shift away from globalization and global trade towards businesses opting for more localized supply chains. This trend is also being reflected in a report published by Bank of America, which claims that the coronavirus pandemic has caused trade disruptions for 80% of global sectors, forcing over 75% of companies to reconsider how they supply their production. Consequently, many companies in the EU and the US are looking to move their manufacturing processes away from China and closer to home. Reshoring their factories, however, could cost as much as $1 trillion. To help with some of the costs incurred, governments in the US, EU, Japan, India, and Taiwan are planning to offer tax breaks, low-cost loans, and other subsidies.