Natalie Blyth, the global head of trade financing at HSBC Holdings Plc, isn’t seeing companies recoil supply chains to their domestic markets to protect against new risks. On the contrary.
She holds the view that the pandemic is acting as the “great accelerator” when it comes to trade, particularly with the aid of technology, as companies strengthen regional bases while eyeing a burgeoning middle class of some three billion consumers across Asia.
“I’ve tried to find it — I can’t find the reshoring. We can find reshaping,” Blyth said. “The super efficient, finely tuned just-in-time inventory model failed in phase one of Covid. But it’s not reshoring that’s the solution to that — it is diversification.”