2 articles
China+1 initially rewarded relocation. Phase two rewards provable localization. As AI-driven customs enforcement compresses detection lags, firms and countries that can document genuine value creation gain a compliance premium while thin assembly strategies face rising risk.
Modern transshipment is a data problem. Enforcement now requires shipment matching, ownership graphs, capacity validation, computer vision, and continuous anomaly detection. Better detection raises evasion costs but pushes arbitrage toward weaker-data jurisdictions.