• Advertise
  • Contact Us
  • About Us
  • Supplier Directory
  • SCB YouTube
  • Login
  • Subscribe
  • Logout
  • My Profile
  • LOGISTICS
    • Air Cargo
    • All Logistics
    • Express/Small Shipments
    • Facility Location Planning
    • Freight Forwarding/Customs Brokerage
    • Global Gateways
    • Global Logistics
    • Last Mile Delivery
    • Logistics Outsourcing
    • LTL/Truckload Services
    • Ocean Transportation
    • Rail & Intermodal
    • Reverse Logistics
    • Service Parts Management
    • Transportation & Distribution
  • TECHNOLOGY
    • All Technology
    • Artificial Intelligence
    • Cloud & On-Demand Systems
    • Data Management (Big Data/IoT/Blockchain)
    • ERP & Enterprise Systems
    • Forecasting & Demand Planning
    • Global Trade Management
    • Inventory Planning/ Optimization
    • Product Lifecycle Management
    • Sales & Operations Planning
    • SC Finance & Revenue Management
    • SC Planning & Optimization
    • Sourcing/Procurement/SRM
    • Supply Chain Visibility
    • Transportation Management
  • GENERAL SCM
    • Business Strategy Alignment
    • Education & Professional Development
    • Global Supply Chain Management
    • Global Trade & Economics
    • HR & Labor Management
    • Quality & Metrics
    • Regulation & Compliance
    • SC Security & Risk Mgmt
    • Supply Chains in Crisis
    • Sustainability & Corporate Social Responsibility
  • WAREHOUSING
    • All Warehouse Services
    • Conveyors & Sortation
    • Lift Trucks & AGVs
    • Order Fulfillment
    • Packaging
    • RFID, Barcode, Mobility & Voice
    • Robotics
    • Warehouse Management Systems
  • INDUSTRIES
    • Aerospace & Defense
    • Apparel
    • Automotive
    • Chemicals & Energy
    • Consumer Packaged Goods
    • E-Commerce/Omni-Channel
    • Food & Beverage
    • Healthcare
    • High-Tech/Electronics
    • Industrial Manufacturing
    • Pharmaceutical/Biotech
    • Retail
  • THINK TANK
  • WEBINARS
    • On-Demand Webinars
    • Upcoming Webinars
    • Webinar Library
  • PODCASTS
  • VIDEOS
  • WHITEPAPERS
Home » Yellen Touts ‘Friend-Shoring’ as Global Supply Chain Fix

Yellen Touts ‘Friend-Shoring’ as Global Supply Chain Fix

Janet Yellen
Janet Yellen, U.S. Treasury secretary, listens during a House Financial Committee hearing in Washington, D.C. Photo: Bloomberg.
July 19, 2022
Bloomberg

U.S. Treasury Secretary Janet Yellen called on “trusted” U.S. allies to strengthen trade relationships to shore up global supply chains disrupted by the pandemic, worsened by Russia’s war in Ukraine and threatened longer term by a reliance on China.

In her longest public address during a three-stop tour of East Asia, Yellen touted her “friend-shoring” concept as a way to reduce the vulnerabilities of a supply system badly strained over the past two years, and as a mechanism for reducing inflation in the U.S. and elsewhere.

“Friend-shoring is about deepening relationships and diversifying our supply chains with a greater number of trusted partners to lower risks for our economy and theirs,” Yellen said, in a speech delivered Tuesday at a research-and-development facility in Seoul run by South Korean conglomerate LG. 

“In so doing, we can help to insulate both American and Korean households from the price increases and disruptions caused by geopolitical and economic risks,” she said.

nearshoring.png

Talks over supply chains come as South Korea’s relations with China become increasingly competitive in global commerce. China has the strongest correlation with South Korea in Asia when it comes to the similarity of their products sold abroad. 

That’s because the world’s second biggest economy is growing more technologically independent while becoming less reliant on supplies from its neighbor, the Korea Trade-Investment Promotion Agency said in a report earlier this month.

LG Energy Solution and LG Chem already have plans to invest at least $11 billion in the U.S. by 2025, said Shin Hak-Cheol, chief executive at LG Chem, at the joint press conference with Yellen.

Globally, including in the U.S., LG Chem will spend $4.5 billion on developing diverse materials used for batteries, such as cathode-active materials, separators and carbon nanotubes, Shin added. 

Read more: American Factories Heat Up as CEOs Take Production Out of China

The Treasury chief singled out China, which has come in for increasing criticism from the Biden administration over a number of issues, as a country on which the U.S. and others should be less reliant.

“We cannot allow countries like China to use their market positions in key raw materials, technologies or products to disrupt our economy or exercise unwanted geopolitical leverage,” she said.

While in Tokyo last week, she also castigated Beijing for failing to coordinate with other major creditors to help heavily indebted countries, like Sri Lanka, that are struggling with a slowing global economy, high inflation and a strengthening dollar.

Yellen also met Tuesday with South Korean President Yoon Suk Yeol, Finance Minister Choo Kyung-ho and Rhee Chang-yong, governor of the Bank of Korea. Yoon said Yellen’s visit demonstrates expanding economic alliance with the U.S., while Choo said that the global economic situation that the two countries are facing is becoming increasingly grave.

The Treasury Secretary also met a group of female entrepreneurs to discuss expanding opportunities for women in the Korean economy.

Yellen traveled to Seoul after attending a gathering of finance ministers from the Group of 20 leading economies. She began her 10-day journey, her first to Asia as head of the Treasury, with a stop in Tokyo.

RELATED CONTENT

RELATED VIDEOS

Global Supply Chain Management Global Trade & Economics Supply Chain Security & Risk Mgmt Supply Chains in Crisis
Bloomberg

Aging Shadow Fleet Carrying Russian Oil Poses Disaster Risk

More from this author

Subscribe to our Daily Newsletter!

Timely, incisive articles delivered directly to your inbox.

Popular Stories

  • A PAINTING IN WHICH A RED HOT AIR BALLOON IS TETHERED TO A GIANT ANCHOR

    Will FTC Succeed in Banning Non-Compete Clauses in Employment Contracts?

    HR & Labor Management
  • WORKERS INTERACT WITH VARIOUS TYPES OF CARGO MOVING EQUIPMENT ON A CROWDED DOCK

    White House Urged to Intervene in West Coast Port Labor Talks

    Global Gateways
  • A MEDLEY OF GRAPHS SHOWING ZIG-ZAG RESULTS AGAINST A MAP OF THE WORLD AND AN IMAGE OF OIL DERRICKSiStock-peshkov-1316669671(1).jpg

    Bringing the Supply Chain Closer: Nearshoring Is Here

    Sourcing/Procurement/SRM
  • A WOMAN STANDS NEXT TO A BIKE, DAPPLED BY THE SHADOWS OF BICYCLE RACKS.

    Walmart is Changing the Way Its Employees Get to Work

    Sustainability & Corporate Social Responsibility
  • A GRAPHIC SHOWING BEAMS OF BRIGHT LIGHT SHOOTING ALL OVER THE SURFACE OF THE EARTH'S GLOBEpg

    Podcast | ‘Supply Chain for Startups’: From Zero to Scale

    Supply Chain Planning & Optimization

Digital Edition

Scb q1 2023 cover

2023 Supply Chain Management Resource Guide: Packing for a Difficult Year

VIEW THE LATEST ISSUE

Case Studies

  • New Revenue for Cloud-Based TMS that Embeds Orderful’s Modern EDI Platform

  • Convenience Store Client Maximizes Profit and Improves Customer Service

  • A Digitally Native Footwear Brand Finds Rapid Fulfillment

  • Expanding Apparel Brand Scales Seamlessly with E-Commerce Technology

  • How a Global LSP Scaled its Security Program and Won More Business

Visit Our Sponsors

Orderful Yang Ming Alithya
Barcoding Blue Yonder BNSF Logistics
CoEnterprise Data Capture Deposco
E2open GAINSystems Generix
Geodis GEP GreyOrange
Here Holman Logistics Honeywell Intelligrated
IFM Infor Inmar
Keelvar Kinaxis Korber
Lean Solutions Group 2H Liberty SBF Locus Robotics
Logility LogistiVIEW Lucas Systems
MCA Connect MPO Nvidia
Old Dominion OpenText ORTEC
Overhaul Parsyl PMMI
QIMA Redwood Logistics Ryder E-commerce by Whiplash
Saddle Creek Logistics Schneider Dedicated Setlog Holding AG
Ship4WD Shipwell Shyft
Sourcemap Tecsys TGW Systems
Thomson Reuters Tive Trailer Bridge
Vecna Robotics Verity
Verusen
  • More From SCB
    • Featured Content
    • Video Library
    • Think Tank Blog
    • SupplyChainBrain Podcast
    • Whitepapers
    • On-Demand Webinars
    • Upcoming Webinars
  • Digital Offerings
    • Digital Issue
    • Subscribe
    • Manage Your Subscription
    • Newsletters
  • Resources
    • Events Calendar
    • SCB's Great Supply Chain Partners
    • Supplier Directory
    • Case Study Showcase
    • Supply Chain Innovation Awards
    • 100 Great Partners Form
  • SCB Corporate
    • Advertise on SCB.COM
    • About Us
    • Privacy Policy
    • Contact Us
    • Data Sharing Opt-Out

All content copyright ©2023 Keller International Publishing Corp All rights reserved. No reproduction, transmission or display is permitted without the written permissions of Keller International Publishing Corp

Design, CMS, Hosting & Web Development :: ePublishing