Sign up for our daily briefing

Make your busy days simpler with Axios AM/PM. Catch up on what's new and why it matters in just 5 minutes.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on the day's biggest business stories

Subscribe to Axios Closer for insights into the day’s business news and trends and why they matter

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios Pro Rata

Dive into the world of dealmakers across VC, PE and M&A with Axios Pro Rata. Delivered daily to your inbox by Dan Primack and Kia Kokalitcheva.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sports news worthy of your time

Binge on the stats and stories that drive the sports world with Axios Sports. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Tech news worthy of your time

Get our smart take on technology from the Valley and D.C. with Axios Login. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Get the inside stories

Get an insider's guide to the new White House with Axios Sneak Peek. Sign up for free.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Catch up on coronavirus stories and special reports, curated by Mike Allen everyday

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Denver news?

Get a daily digest of the most important stories affecting your hometown with Axios Denver

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Des Moines news?

Get a daily digest of the most important stories affecting your hometown with Axios Des Moines

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Twin Cities news?

Get a daily digest of the most important stories affecting your hometown with Axios Twin Cities

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Tampa Bay news?

Get a daily digest of the most important stories affecting your hometown with Axios Tampa Bay

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Charlotte news?

Get a daily digest of the most important stories affecting your hometown with Axios Charlotte

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Nashville news?

Get a daily digest of the most important stories affecting your hometown with the Axios Nashville newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Columbus news?

Get a daily digest of the most important stories affecting your hometown with the Axios Columbus newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Dallas news?

Get a daily digest of the most important stories affecting your hometown with the Axios Dallas newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Austin news?

Get a daily digest of the most important stories affecting your hometown with the Axios Austin newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Atlanta news?

Get a daily digest of the most important stories affecting your hometown with the Axios Atlanta newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Philadelphia news?

Get a daily digest of the most important stories affecting your hometown with the Axios Philadelphia newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top Chicago news?

Get a daily digest of the most important stories affecting your hometown with the Axios Chicago newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Sign up for Axios NW Arkansas

Stay up-to-date on the most important and interesting stories affecting NW Arkansas, authored by local reporters

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Want a daily digest of the top DC news?

Get a daily digest of the most important stories affecting your hometown with the Axios DC newsletter.

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Please enter a valid email.

Please enter a valid email.

Subscription failed
Thank you for subscribing!

Illustration: Megan Robinson/Axios

Factory talk hasn’t been this hot since the height of the U.S.-China trade war.

  • Then: Some companies shifted production out of China to dodge tariffs and moved factories to places like Vietnam.
  • Now: They’re scrambling to push production to China — and other countries.

Why it matters: The Delta variant hit manufacturing hubs in Vietnam hard, prompting strict virus mitigation tactics that brought factory production to a screeching halt — and put a dent in consumer products makers' revenues.

What's happening: Signs the angst around Vietnam (a massive supplier of clothing and shoes to the U.S., behind China) is pushing companies to make moves popped up in a ton of earnings calls.

  • Nike says it's shifting apparel production out of Vietnam to Indonesia, China and other places "where viable."
  • Crocs last week said it's shifting production to places besides Vietnam — like China, Indonesia or Bosnia. Because its sandals are easy to make, executives say they can ramp up quickly. 

Flashback: Vietnam was an unintended winner of the trade war.

  • Some companies shifted production from China to dodge those taxes. That kicked into high gear a shift that had been underway for years.

Take trendy couch maker LoveSac. At the height of trade tension, it pulled some production out of the country to dodge tariffs.

  • CFO Donna Dellomo told Wall Street on an earnings call last month that the company is shifting some inventory purchases back to China while “container congestion” plagues Vietnam — even if they have to pay tariffs on that merchandise.

What we're watching: The pandemic could be what prompts companies to cough up cash and spread out where they source their stuff.

  • "What we're hearing is, and this is not as much a near-term goal but a longer-term goal ... as opposed to building another factory in China, [companies] might look to Indonesia or to Mexico or Latin America," says Grant Bowers, a portfolio manager at Franklin Equity Group.

The big picture: Steve Lamar, head of the American Apparel & Footwear Association, a trade group that represents hundreds of companies, says retailers have been staking out suppliers in Central America or Africa as part of a “generational sourcing shift to diversify their supply chains.”

  • Yes, but: “Vietnam remains an important partner for the industry and that will continue to be the case.”

The bottom line: For all the talk of shifting more production to China, cities there are also beating back problems — and it's not just COVID infections.

  • In recent weeks, local authorities mandated factories to cut back on power usage amid a brewing energy crisis.

Kate Marino contributed reporting.

Go deeper

JPMorgan CEO walks back joke about Chinese Communist Party

JPMorgan CEO Jamie Dimon in Paris in June 2021. Photo: Michel Euler/Pool/AFP via Getty Images

JPMorgan CEO Jamie Dimon walked back a recent critique of the Chinese Communist Party on Wednesday, saying he regrets joking that the bank will outlast the party in China.

Driving the news: Speaking at the Boston College Chief Executives Club Tuesday, Dimon noted that JPMorgan's Chinese operations and the CCP were both celebrating their 100th year anniversary in 2021 and said he would bet that the bank would outlive the party, according to Bloomberg.

Mar 18, 2020 - World

Timeline: The early days of China's coronavirus outbreak and cover-up

Photo Illustration: Sarah Grillo/Axios Photos: Stringer/Getty Images, Feature China/Barcroft Media via Getty Images, Peng/Xinhua via Getty via Getty Images

Axios has compiled a timeline of the earliest weeks of the coronavirus outbreak in China, highlighting when the cover-up started and ended — and showing how, during that time, the virus already started spreading around the world, including to the United States.

Why it matters: A study published in March indicated that if Chinese authorities had acted three weeks earlier than they did, the number of coronavirus cases could have been reduced by 95% and its geographic spread limited.

14 mins ago - Health

First U.S. case of the Omicron variant identified in California

PhotoL Chip Somodevilla/Getty Images

The first U.S. case of the Omicron variant was detected in California, the Centers for Disease Control and Prevention confirmed Wednesday.

Driving the news: The confirmed case was detected in a traveler returning from South Africa who was fully vaccinated and has mild symptoms, the CDC says.