Foley & Lardner LLP Partner Michael Walsh is quoted in the Los Angeles Times article, “Foreign businesses want out of China. But breaking up may be tougher than ever,” about both the growing desire and difficulties in shifting production out of China.
Multinational companies are facing several threats to their business in China, like the deteriorating U.S.-China relationship and China’s zero-COVID policies. However, shifting production abroad presents equally difficult challenges for companies, including material and labor shortages, untested supply chains, and increased production costs.
Walsh said, “Companies do not want to do this. It is truly challenging, and I think that the push may have fallen by the wayside if it were not for the Russian invasion.”