Supply Chain Geopolitics
How the pandemic, the Ukraine war, and US-China competition exposed the vulnerabilities of global supply chains.
The Fragility Exposed
For decades, global supply chains optimized for efficiency. Companies sourced components from wherever they were cheapest, held minimal inventory, and relied on just-in-time delivery. A single iPhone contained parts from over 40 countries. This system delivered extraordinary cost savings but created hidden fragilities that became visible during the COVID-19 pandemic.
When China's factories shut down in early 2020, the ripple effects were immediate. Auto manufacturers could not get semiconductor chips. Hospitals ran short of protective equipment. Pharmaceutical companies discovered that 80% of active pharmaceutical ingredients were sourced from China and India. The 2021 Suez Canal blockage, when the Ever Given container ship ran aground for six days, showed how a single chokepoint could disrupt $9 billion in daily trade.