While the specific uncertainties of the pandemic years are behind us, a number of ongoing challenges remain, both China-specific and global. Most recently, the attacks in the Red Sea have shown that global shipping routes are very vulnerable to disruption. Moreover, companies are increasingly coming under pressure to make their supply chains more sustainable as consumers become more concerned with the carbon emissions generated by the sourcing and transportation of the products they consume.<\/p>\n As a result, some companies have started to explore strategies like \u2018reshoring\u2019 (bringing manufacturing and services back to the company\u2019s home country) or \u2018friendshoring\u2019 (relocating production and supply chains to allied countries that are considered politically and economically \u2018safe\u2019). A 2023 survey by the Institute of Directors<\/a> found that around 20% of UK importers have already made alterations to their supply chain, with 15% are considering making alterations.<\/p>\n Nevertheless, China-linked supply chains still have the advantage both in terms of cost and in terms of quality, with the Chinese government investing heavily in technological innovation and human capital. And given that China was the UK\u2019s 5th<\/sup> largest trading partner<\/a> in the four quarters to the end of Q3 2023, supply chains between the UK and China are \u2013 and will remain \u2013 a priority for most companies.<\/p>\n![\"\"](\"https:\/\/focus.cbbc.org\/wp-content\/uploads\/2024\/03\/unnamed-3-1024x576.png\")
<\/a>The pandemic reiterated the centrality of China to global supply chains. As parts of China went into and out of lockdown, many companies considered sourcing from suppliers outside of China. But this merely mitigated rather than eliminated the risk \u2013 core components of so many products still come from China.<\/p>\n