“Analysis by the Bank for International Settlements shows supply chains are growing longer and more complicated, while their origins remain mostly unchanged… In 2021 American and Chinese firms were closer together in the supply chain than the global average (as measured by the number of steps between American customers and Chinese suppliers). They will end 2023 farther apart than they were. And, though chains have lengthened globally, the distance between American and Chinese firms has grown by more than the rest…
Businesses with supply chains that pass through many hands are often unaware of the real origin of their products. So these lengthening chains may be concealing the fact that supplies, for the most part, still originate in China. Attempts at true diversification have shown no progress. Firms are more dependent on a few key suppliers than before: the average number of customers and suppliers for firms globally have both slightly decreased. That suggests the “China Plus One” strategy, in which firms create a contingency supply route that excludes China, is more talk than action. Despite the rhetoric heard in C-suites and government halls, America’s new supply chains still lead back to the same risky trading partner.”
https://www.economist.com/graphic-detail/2023/11/14/dont-be-fooled-by-americas-new-supply-chains