One in five importers have made alterations to their supply chains because of geopolitical tensions, particularly with China, new research suggests.
The survey, run by the Institute of Directors (IoD), found that 20.5% of importers had altered their supply chains as a result of tensions abroad, while a further 14.5% were considering doing the same.
The IoD said that many UK firms are concerned about sudden disruptions to their supply chains if relations with China deteriorate.
In particular, they worry about supply chain delays, security of their data in Chinese systems, and diplomatic relations between the UK and China.
Emma Rowland, trade policy adviser at the IoD, said: "It is clear businesses are sensing geopolitical-shaped clouds on the horizon, particularly while China's standing with the US, Russia and Taiwan remains uncertain.
"The pandemic, coupled with the invasion of Ukraine, has exposed vulnerabilities in international supply chains and an overreliance on countries perceived to be high-risk to the UK.
"Ultimately, firms are pursuing long-term stability in their supply chains, so they can provide certainty to their own end customers."
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