Main Article Content
We provide evidence that the COVID-19 pandemic has incentivized U.S. firms to rebalance the trade-off between manufacturing cost efficiency and supply chain resilience in their sourcing decisions. Over the past few decades, companies have been outsourcing production to low-cost countries such as China in pursuit of cost-efficiency. However, the risk of supply chain disruptions has been receiving heightened attention recently, as countries strive to prioritize scarce resources for domestic needs during the global pandemic. Our research shows that while China’s supply chain has proved resilient, U.S. companies have increased their access to medical supplies through domestic production. As a result, COVID-19 has highlighted the importance of local capacity and changed the traditional perception of outsourcing from a purely economic efficiency focus to one emphasizing the need to balance risks in global exposures.
The Medical Research Archives grants authors the right to publish and reproduce the unrevised contribution in whole or in part at any time and in any form for any scholarly non-commercial purpose with the condition that all publications of the contribution include a full citation to the journal as published by the Medical Research Archives.
 Hertzel Michael G, Peng Jie, Wu Jing, Zhang Yu. Global supply chains and cross-border financing Available at SSRN 3289212. 2018.
 PWC . Sourcing and logistics in China. Costs, processes and strategies of German companies procuring in the Chinese market https://www.pwc.com/gx/en/chemicals/pdf/ sourcing and logistics in china v2.pdf 2008.
 QIMA . Global Sourcing in 2022: Uncertainty the New Norm https://www.qima.com/qima-news/2022- q2-barometer-uncertainty-new-norm 2022.
 Corbett Michael. The Outsourcing Revolution: Why It Makes Sense and How to Do It Right. Dearborn Trade Publishing first ed. 2004.
 Norman Jonas. THE HOLLOW CORPORATION. (cover story). BusinessWeek. 1986:57 - 59.
 Wong Alison. China Imposes New Export Restrictions for COVID-19 Medical Products https://www.twobirds.com/en/insights/2020/china/china-imposes-new-export-restrictions-for-covid-19-medical-products 2020.
 Liu Luffy. 700 Tech Companies in China Have Begun Making Masks https://www.eetimes.com/700- tech-companies-in-china-have-begun-making-masks/ 2020.
 Tian Ying. Chinese automakers produce face masks to fight coronavirus https: //europe.autonews.com/automakers/chinese-automakers-produce-face-masks-fight- coronavirus 2020.
 Cerullo Megam. Mask makers work overtime in China to meet spike in demand https://www.cbsnews.com/news/coronavirus-outbreak-china-rubber-gloves-surgical-equipment-3m-mask-overtime-lunar-new-year/ 2020.
 Andres B. Schwarzenberg Karen M. Sutter. Medical Supply Chains and Policy Options: The Data Challenge https://crsreports.congress.gov/product/pdf/IF/IF11648 2020.
 Agca Senay, Babich Volodymyr, Birge John R, Wu Jing. Credit shock propagation along supply chains: Evidence from the CDS market Management Science. 2021.
 Charoenwong Ben, Han Miaozhe, Wu Jing. Trade and Foreign Economic Policy Uncertainty in Supply Chain Networks: Who Comes Home? Manufacturing & Service Operations Management. 2022.
 Agca Senay, Birge John R, Wang Zi’ang, Wu Jing. The impact of COVID-19 on supply chain credit risk Available at SSRN 3639735. 2020.
 OECD. COVID-19 AND INTERNATIONAL TRADE: ISSUES AND ACTIONS https://www.oecd.org/trade/documents/covid-19-international-trade-issues-actions.pdf 2020.
 Kaplan Deborah Abrams. Developing the coronavirus vaccine supply chain https://www.supplychaindive.com/news/coronavirus-vaccine-supply-chain/579835/ 2020.
 Dzhanova Yelena. Trump compelled these companies to make critical supplies, but most of them were already doing it https://www.cnbc.com/2020/04/03/coronavirus-trump-used-defense-production-act-on-these-companies-so-far.html 2020.
 White Joseph. GM, Ford coronavirus U.S. ventilator projects close in on their finish lines https://www.reuters.com/article/us-health-coronavirus-autos-ventilators-idUSKBN25L2P4 2020.
 Molina Brett. Elon Musk says Tesla is working on ventilators for coronavirus patients but doubts there will be a shortage https://www.usatoday.com/story/money/cars/2020/03/19/coronavirus-teslas-elon-musk-offers-make-ventilators/2873355001/ 2020