About RESHORE

RESHORE examines why European manufacturing firms relocate production away from China, and whether they choose to reshore to Europe or friendshore to other countries. The project focuses on political drivers that are often overlooked in existing research. These include geopolitical tensions, government policies, regulatory pressures, and public attitudes towards trade and offshoring. The topic is highly relevant today: trade and investment policies continue to be politicized, and firms face growing geopolitical risks, supply-chain vulnerabilities, and pressure to reduce their dependence on China. In line with ongoing discussions on “de-risking” and economic security, a plethora of initiatives are proposed to help European firms diversify their supply chains and reduce exposure to geopolitical risk.

The project proceeds in four steps.

• First, it develops a new theoretical framework that combines political and economic drivers of relocation.
• Second, it creates a comprehensive dataset tracking European firms’ ownership positions in China over two decades, revealing patterns of divestment and the factors associated with firms’ decisions to disengage from China.
• Third, a firm-level survey and conjoint experiment examine why firms relocate and which conditions make reshoring or friendshoring more attractive.
• Finally, the findings are combined with comparative case studies, refining the theoretical framework and identifying policies that can effectively influence firms’ relocation decisions.

RESHORE will advance research on the political economy of firms and global production by showing how geopolitical, regulatory, policy, and societal pressures shape corporate relocation decisions. It will provide a more comprehensive explanation of reshoring and friendshoring than approaches focused mainly on economic costs. The findings will also have practical relevance. Policy-makers will gain evidence on which instruments are most effective in encouraging resilient production and managing economic security. Businesses will gain a better understanding of the political risks and incentives that shape relocation choices. The project will therefore connect academic research with current policy and business challenges surrounding global supply chains. For a detailed description of the project’s aims and methodology, see the full project outline.