This works particularly well for cheap items, where raw material costs (which are mostly just the energy cost of mining and refining) and shipping costs dominate. Usually, things are shipped around so they can be processed in the most specialized/energy efficient facility available. For small items, the pollution associated with shipping via ocean freight is miniscule.
As for the second point, the current system is fragile, but compared to what? If I had to pick a pandemic to live through at any point in time so far, covid would be my first choice.