Companies and policymakers are exploring ways to make their supply chains more resilient by “moving production home or to trusted countries,” the IMF said.

Foreign multinationals in the U.S and Europe are getting more cautious about their capital investments in China due to geopolitical concerns, said consultancy. 

Secretary of State Antony Blinken met with China’s top diplomat, Wang Yi, on the margins of the Munich Security Conference.

The U.S-China trade relationship has endured Covid and tariffs. Now alleged spy balloons are giving industries like retail another reason to move manufacturing.