Signs of “reglobalization” emerge in world trade data: The global trading system is witnessing significant changes — dubbed by some as a “reglobalization” trend — as governments and businesses work to diversify their supply sources to secure access to essential goods in the face of rising geopolitical tensions, Bloombergreports. International supply chains are expected to drastically change in upcoming years as a result of this trend.

The main actors in the “reglobalization” trend are US + China: US tariffs, export restrictions, and subsidies have prompted US companies to diversify their imports away from China, with Mexico becoming a major US sourcing alternative to China, Bloomberg writes. Smartphone manufacturers like Apple, for example, are working to reduce dependence on China as a trade war between the US and China escalates. Meanwhile, China’s industrial policies have led it to become the largest exporter of EVs, while Vietnam has emerged as another hub for companies looking to diversify away from China.

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