Krugman cites a recent Bloomberg review of C.E.O. business presentations which found a huge surge in buzzwords like onshoring, reshoring and nearshoring, all indicators of plans to produce in the United States (or possibly nearby countries) rather than in Asia. As such, we may be seeing early indications of a partial retreat from globalization. This is happening for a couple of reasons.

First, companies talking about reshoring production often make the point that modern techniques in some cases allow them to produce with relatively few workers, making cost savings from outsourcing becoming outweighed by the logistical advantage of producing close to home.

Second, producers are learning that the world is a dangerous place, especially when you rely on countries with authoritarian regimes like China. Indeed, the arbitrariness of Xi Jinping’s Covid lockdowns have made businesses newly nervous about relying on Chinese suppliers.

A third reason is politics. Some of the recent policies the US introduced will be at least mildly protectionist. Notably, the new tax credit for purchases of electric vehicles will apply only to vehicles assembled in North America.

There’s a lot more; have a look at the article here (sub req.)