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Recent Editions
Risk Channel
North America
Some companies that shifted manufacturing and sourcing out of China to avoid higher U.S. tariffs are moving orders back after encountering production constraints, supply-chain disruptions, higher costs, and infrastructure challenges elsewhere. Target has reportedly restored some orders to Chinese suppliers, Shein is scaling back some operations in Vietnam, and several manufacturers have abandoned overseas production after struggling to replicate China’s skilled labor, extensive supplier networks, equipment availability, and reliable power supply. The financial incentive to relocate has also weakened as the U.S. has expanded tariffs to more countries, narrowing the gap between China and alternative manufacturing hubs such as Vietnam, Indonesia, and Thailand. Companies also point to China’s greater resilience during periods of energy and commodity disruption, although production elsewhere can still provide a hedge against future tariff increases. Despite the partial reversal, the broader “China plus one” strategy remains intact, with Southeast Asia continuing to attract billions of dollars of manufacturing investment. Some businesses are maintaining smaller operations outside China to diversify geopolitical and tariff risks, while others are looking beyond the U.S. for new export markets amid continued uncertainty over trade policy.
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Risk Channel
UK/Europe
A European Commission document seen by Reuters indicates that the European Union will propose a ban restricting under 15s from social media, video sharing platforms, AI chatbots and online games. The proposal is part of an EU Kids Act to be presented by European Commission President Ursula von der Leyen and EU tech chief Henna Virkkunen on Thursday. Reuters says von der Leyen may announce some details in her State of the Union address on upcoming EU policy today. "The Union's approach should allow minors to benefit from the huge potential of digital services, while protecting them from abuse and exploitation. It needs to limit the access of tech companies to our children, and not the other way around," the document said.
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