Economy and trade

Supply chains

In recent months, senior US officials have outlined a strategy to improve the resilience of critical supply chains by sourcing goods mainly from friendly countries. US Secretary of the Treasury Janet Yellen referred to this as ‘friendshoring’ and cast it as, among other things, a response to the ‘over-concentration of the production of critical goods inside China’.

In the context of the Covid-19 pandemic, Russia’s invasion of Ukraine, Chinese trade restrictions on Australia, and rising US–China tensions, the idea of friendshoring supply chains also appears to resonate with Australians.

A strong majority (70%) say that Australia should place a high priority on ensuring supply chains run through countries that are friendly towards Australia, even if it means higher prices. Only three in ten (29%) say the priority should be ‘keeping prices as low as possible, even if it means that supply chains run through countries that are unfriendly towards Australia’.

However, opinions differ by age. People aged 45 and over are more likely to prioritise ‘friendshoring’ (79%) than people aged under 45 (59%). Conversely, more people aged under 45 place a priority on keeping prices as low as possible (40%) compared to those aged 45 and over (19%).

Economy and trade
Supply chains

Question

Now thinking about global trade and the supply chains through which Australia sources goods from other countries. In your opinion, which of the following statements should be a higher priority for Australia?

Lowy Institute Poll results on this issue are almost identical to those from polling conducted by the Chicago Council on Global Affairs in the United States in November 2022. Asked a similar question, seven in ten Americans (69%) say the United States should prioritise ensuring supply chains run through friendly countries, even if this means higher prices. Only three in ten (29%) say the United States should prioritise keeping prices as low as possible, even if it means supply chains run through unfriendly countries.