I recently read an article in the Financial Times by Professor Christopher S. Tang, discussing the complications companies face in de-risking their supply chains from China. While the points made are valid, I believe there are several nuances that are crucial.

Internal Capabilities Matter:

• It's Not Just Geographical Shifts: Shifting a supply chain from China to India or Vietnam doesn’t automatically negate the risks; it merely changes their nature.
• Political Risks Persist: Even when moving to 'friendlier' nations, companies still operate in a geopolitical framework that is continuously changing.

Overlooking Internal Capabilities:

• Complexity in Scalability: Companies like Dell and Apple have the resources to relocate, but what about medium-sized enterprises? The scale of the operation significantly influences its success.
• Operational Excellence: The move should be backed by a solid strategy of how to set up operations efficiently in the new location. Operational issues can’t be ignored for the sake of geopolitical safety.

Misguidance on Transparency:

• Blind Spots in the Supply Chain: Just because a company shifts its supply chain doesn’t mean it gains full visibility. Transparency is more about digitization and less about location.
• Global Alliances: Although useful, global alliances like the CPTPP or the Indo-Pacific Economic Framework are just a piece of the puzzle. Companies need a multi-pronged approach to genuinely de-risk.

De-risking is a complex strategy requiring more than just geographical shifts. It involves an intricate balance of geopolitical knowledge, operational efficiency, and risk management.

Do not underestimate the complexity required. Rather, embrace it, and use it to leverage your business to a point of mastering the modern world.