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The Impact of Geopolitical Tensions on Global Trade and Sourcing

Trade routes, sourcing hubs, and supplier relationships are under pressure. Businesses face increased volatility due to geopolitical friction. Global procurement must become more agile and diversified.<br><br><br>

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The Impact of Geopolitical Tensions on Global Trade and Sourcing

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  1. The Impact of Geopolitical Tensions on Global Trade and Sourcing Presented by Dragon Sourcing

  2. How Geopolitics Is Reshaping Global Trade in 2025 • Introduction Trade routes, sourcing hubs, and supplier relationships are under pressure Businesses face increased volatility due to geopolitical friction. Global procurement must become more agile and diversified.

  3. The U.S.–China Trade War • From Tariffs to Tech Restrictions Ongoing tariffs and counter-tariffs across sectors Technology decoupling: chip bans, cybersecurity concerns Impact on electronics, manufacturing, and supply chain costs

  4. China+1 Strategy • Shifting the Manufacturing Landscape Growing trend to diversify away from China Rise of Vietnam, Thailand, Mexico, and India as alternatives Reduces geopolitical risk and improves resilience

  5. India’s Rise in Global Sourcing • India as a Manufacturing Powerhouse Government push: Make in India, PLI schemes Skilled labor force and improving infrastructure Increasing interest from global brands and procurement leaders

  6. EU Trade Regulations • Tightening Trade and ESG Compliance Carbon border adjustment mechanism (CBAM) Supply chain due diligence directives ESG and sustainability regulations impacting supplier qualification

  7. Sanctions and Export Controls • Growing Compliance Burden Impact of Russia-Ukraine conflict and Middle East unrest Frequent changes in sanctioned entities and embargo zones Increased documentation and supplier vetting required

  8. Technology Nationalism • Securing Digital and Critical Resources • National control over chip manufacturing and rare earths • Stricter data localization laws • Barriers to digital supply chains and cloud procurement tools

  9. Risk Mitigation Strategies • Navigating a Fragmented Trade Landscape Multi-region sourcing and nearshoring Use of digital tools for supplier risk analysis Investing in local partnerships to reduce overexposure

  10. Resilience vs. Cost • Strategic Trade-offs for Procurement Leaders • Shifting from cost-centric to value-centric procurement • Importance of agility, flexibility, and supply continuity • Building internal alignment between finance, operations, and procurement

  11. Conclusion • Building Geopolitics-Aware Sourcing Strategies Monitor global developments continuously Treat geopolitical risk as part of strategic planning Diversify suppliers and markets to stay competitive

  12. Dragon Sourcing • Thank You For Your Attention • www.DragonSourcing.com

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