US Firms Move Supply Chains Out of China, Explore Options Closer to Home

Employees are working on a battery production line at a factory in Huaibei in China's eastern Anhui Province on March 30, 2020. STR/AFP via Getty Images

WASHINGTON—The U.S.–China trade war and the COVID-19 pandemic have forced companies to reduce their excessive dependence on China as a single supplier.

U.S. brands have started to explore sourcing options closer to home, with Latin and South America gaining significant traction in recent months, according to a survey by Qima, a Hong Kong-based supply chain inspection company.