ABSTRACT
The chapter discusses geopolitical events related to international relations in light of the conflict between the US and China before and after the COVID-19 pandemic. The empirical analysis shows that the phenomenon of reshoring has become a new trend in international business, causing shifts from the previous trend of offshoring. In recent years, the new phenomenon has accelerated significantly due to two factors: the trade war between the US and China and the COVID-19 pandemic. Businesses are much more likely to relocate their production facilities from China to their home or nearby countries for two reasons. The first reason is a change in tax policy and subsidies to companies that will transfer capital to their home countries, as in the case of the US. The second reason is the shortening of supply chains to countries with high investment attractiveness reflected in cheap labor and more favorable tax regulations.
