The rush to exit China is creating a web of new risks:
1. Corruption Hotspots:
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Vietnam’s “coffee money” demands add 15-20% to project costs
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Mexican border officials increasingly demanding bribes (up 37% per S&P report)
2. Infrastructure Gaps:
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Indian ports struggle with 68-hour average container dwell time
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Thailand’s electrical grid can’t support planned chip fabs
3. ESG Backlash:
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Bangladesh garment factories face new EU sustainability tariffs
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Indonesian nickel mines linked to 41 toxic spill incidents
Corporate Fallout:
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Dell’s $430M write-down on failed India expansion
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IKEA’s Vietnam deforestation scandal
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Ford hits brakes on Mexico EVs due to security crisis
Expert Warning:
“Companies are swapping geopolitical risk for operational risk,” says McKinsey’s supply chain lead. “Many haven’t done proper due diligence.”
