By Global trade data shows $1.2 trillion in supply chain relocations since 2022 – the largest restructuring since 1945 – with three industries undergoing radical transformation:
1. Semiconductors:
- Taiwan’s TSMC pours $40B into Arizona and Germany fabs
- China’s SMIC circumventing bans with 7nm node production (+210% domestic chip use)
- Samsung China revenue plunges 32% amid US-China tech war
2. Electric Vehicles:
- BYD invests $1B in Thai plant to bypass EU tariffs
- Tesla is relocating its battery production operations from Shanghai to Texas (85GWh annual capacity by 2026)
- EU imposing 28% tariffs on Chinese EVs, boosting Moroccan auto parts industry
3. Textiles/Apparel:
- Bangladesh has overtaken China as the European Union’s primary apparel source, now commanding 38% of all garment imports – a historic first in EU trade data.
- Fast-fashion leader Shein is executing a major supply chain pivot, relocating 50% of its manufacturing from China to new hubs in Brazil and Turkey amid growing US-China trade tensions.
- US cotton trade flows have undergone a dramatic reorientation, with Vietnamese imports skyrocketing 73% year-over-year as Chinese demand evaporates amid tariff disputes.
Geopolitical Fallout:
The EU’s “de-risking” strategy shows cracks as:
- Germany’s BASF loses $2.1B in China chemical sales
- French luxury brands face Chinese consumer boycotts
- Italy’s machinery exports to China plunge 41%