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Friends Without Benefits

By calling for supply chains to be shifted away from strategic rivals, US Secretary of the Treasury Janet Yellen has implicitly rejected the notion that trade with one's adversaries fosters peace and diplomacy. But that old idea still has much to recommend it.

PRINCETON – Russia’s invasion of Ukraine has challenged the international order, but so has the response from large industrial countries. In a striking speech at the Atlantic Council earlier this month, US Secretary of the Treasury Janet Yellen cited China’s ambiguous response to Russian aggression as a reason to “friend-shore” more production. The idea is that the United States and its partners and allies should take more control over critical supply chains by shifting their trade relations away from strategic competitors.