Supply chains are 'very difficult to put together, and equally difficult to disentangle,' says Stephen Roach, former chairman of Morgan Stanley Asia.
Components that make up products such as the iPhone are typically made in different countries before being assembled in one location and shipped to their final destinations.
These manufacturing chains that span multiple locations take many years to form and allow products to be made using the lowest possible costs, trade experts have said. Disrupting that ecosystem would add to costs, which potentially could be passed on to consumers, economists have warned. Southeast Asian countries such as Vietnam, Malaysia and Thailand have been some of the biggest beneficiaries of supply chain shifts over the past year. But experts have said thatThe complexity of existing supply chains tying the world's economies together also means that it will be difficult for the U.S. and China to "decouple," said Roach, referring to the increasing disconnect between the two largest economies in the world.
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