BTL 782 - China One Plus Strategy

 

The Banking Tutor’s Lessons

BTL 782                                                                          09-05-2025

China One Plus Strategy

The “China Plus One” strategy is a business approach that encourages companies to diversify their operations by expanding outside of China while still maintaining a presence in the country.

For the past three decades, Western businesses have heavily invested in China because of its cheap labour and manufacturing costs, as well as its growing consumer market. However, it led to an over-reliance on China for their business interests, which can be risky given geopolitical tensions and unforeseen disruptions.

The concept of “China Plus One” was first introduced in 2013 by the officials and businesses in Japan and the United States of America (USA).

Companies adopting this strategy diversify their production and sourcing to other alternate countries with a conducive environment for business like India, Vietnam, Thailand, Cambodia, and Malaysia. By doing so, companies can reduce their dependence on China while still taking advantage of its benefits.

Sekhar Pariti

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