Contemporary Finance & Economics ›› 2024, Vol. 0 ›› Issue (7): 132-139.

• Industry & Trade • Previous Articles     Next Articles

The Transformation of Outsourcing Strategies in the United States and China’s Response Strategies

LIU Ya-zhen1,2, LIU Dan-lu1   

  1. 1. Nanjing University, Nanjing 210093;
    2. Nanjing Xiaozhuang University, Nanjing 211171, China
  • Received:2023-10-23 Revised:2024-03-11 Online:2024-07-15 Published:2024-08-27

Abstract: The current outsourcing strategy in the United States has been transformed into the following three forms:“onshoring”,“nearshoring”, and“friendshoring”. This means that the motivation for outsourcing has also undergone a significant change in the US, shifting from a focus on efficiency in the past to balancing safety and efficiency, and placing so-called safety first in competition with China. The confidence of the transformation of outsourcing strategy in the United States lies in its possession of the largest domestic unified market in the world. At present, the United States is using this absolute market advantage to attempt to comprehensively deconstruct the global value chain that China has already embedded over the past years. The fundamental long-term solution for China to crack the transformation of the United States outsourcing strategy lies in shaping a strong domestic unified market. In the short term, such specific measures can be taken: by optimizing the investment and business environment, making every effort to reduce transaction costs to attract and retain more foreign-invested enterprises; by encouraging Chinese enterprises to accelerate their “going out” and join forces to go global, with the United States, Mexico and Canada as the investment target area, strengthening the connection with the industrial chain led by United States; by adopting a higher level of openness to affect the allies of the United States and different interest groups within the United States, and reshaping a new pattern of China’s international economic cycle; etc.

Key words: onshoring, nearshoring, friendshoring, hyper-scale market, opening up to the outside world

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