Richard Mojica Comments on Industry Challenges with China-linked Supply Chains in Bloomberg Law
"Boeing, Nike Wrestle With Supply Chain Pressures Over China Risk"
Companies are facing increased pressure from the U.S. government and investors to cut ties with China over geopolitical tensions and supply chain concerns. Richard Mojica said for many companies, "cutting China out of their supply chain is not realistic — at least in the short or medium term," making it challenging for companies to diversify their supply chains. The Uyghur Forced Labor Prevention Act (UFLPA), a new U.S. human rights law targeting Chinese goods made with forced labor, is also adding pressure on companies. "One of the key concerns and challenges among numerous industries right now is the need to trace their supply chains and map them way back to the Nth degree," Mojica said. "That is a humongous challenge." While many companies see their Chinese operations a growing area of concern, most companies are not ready to leave China. "There's certainly movement but it's strategic and it can be piecemeal," Mojica said. "There's not this rush to get out of China."