China plus one

The 'China plus one' strategy refers to a business approach where companies diversify their supply chains and manufacturing operations to reduce over-reliance on China. This trend has gained significant traction as global businesses seek to mitigate risks associated with geopolitical tensions, trade disputes, and supply chain disruptions. Recent developments highlight how countries like India and Vietnam are actively positioning themselves as attractive alternatives. Analysts suggest India and Vietnam could even collaborate, leveraging India's scale and technology with Vietnam's manufacturing agility and East Asian supply chain links, particularly in high-value sectors like electronics and pharmaceuticals. However, the strategy also faces complexities, as evidenced by US accusations of transshipment scams where Chinese goods are routed through other Southeast Asian nations to avoid tariffs. This underscores the ongoing efforts by countries to attract investment while navigating international trade regulations and the evolving global manufacturing landscape.