“Doubts on China’s earlier attempt to hide the pandemic does not help increase trust in their system and therefore, countries that can show evidence of good governance in tough times like this will be considered more favorably.”
Pulling supply chains out of China is more difficult than it sounds. The real question, Mr Bower said, was “what’s the better business strategy in terms of creating redundant or supporting supply chains, if you have an emergency with China”. The Covid-19 pandemic has introduced a new variable, or a new catalyst, to an evolutionary process already under way.
It is a question of “which government really seemed to have their act together in terms of crafting responses and which do they perceive to be all over the show and making things more difficult”, Mr Mealy said. “Now it’s going to be ‘we care about costs’, and ‘we want to be efficient’, but ‘we also want to know what place offers the best resilience’,” Mr Mealy said. “If something does happen, which governments are smart, and which governments are not so smart.”
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