{"id":10591,"date":"2022-11-08T12:49:26","date_gmt":"2022-11-08T07:19:26","guid":{"rendered":"https:\/\/polscienceweb.com\/?post_type=portfolio&#038;p=10591"},"modified":"2022-11-08T12:49:49","modified_gmt":"2022-11-08T07:19:49","slug":"what-is-the-china-plus-one-strategy","status":"publish","type":"portfolio","link":"https:\/\/polscienceweb.com\/index.php\/portfolio\/what-is-the-china-plus-one-strategy\/","title":{"rendered":"What is the &#8220;China plus one&#8221; strategy?"},"content":{"rendered":"\n<h4 class=\"has-text-align-center wp-block-heading\"><strong>Understanding<\/strong><\/h4>\n\n\n<div class=\"has-text-align-center wp-block-post-date\"><time datetime=\"2022-11-08T12:49:26+05:30\">8th November 2022<\/time><\/div>\n\n\n<div style=\"height:14px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<details class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\">\n<summary class=\"wo-block-verse\" style=\"font-size: 18.5px; text-align: center;\">Read more<br><br><\/summary>\n\n\n\n<p class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\"\n>&#8220;China plus one&#8221; is a strategy in which companies avoid investing only in China and diversify their businesses to alternative destinations.<\/p>\n\n\n\n<p class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\"\n><strong>Why opt out of China? <\/strong>Over the past 30 years, China has been an attractive investment location\u00a0due to the\u00a0low cost of labor and production\u00a0and an\u00a0increasing domestic consumer\u00a0market.<\/p>\n\n\n\n<p class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\"\n>However,&nbsp;<strong>supply chain disruptions<\/strong> (container shortages, chip shortages), China\u2019s <strong>data privacy law<\/strong> (that specified how companies can collect and store data), and China&#8217;s &#8220;<strong>zero-covid&#8221; policy<\/strong> have caused MNCs to&nbsp;downsize their presence in China.<\/p>\n\n\n\n<p class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\"\n>Just as Rome was not created in a day, neither was this strategy. As early as 2008, officials and firms in Japan and the United States were considering a strategy to diversify away from China. However, when <strong>US-China trade tensions<\/strong> were at their peak, China plus one gained steam as an alternative strategy for MNCs. The driving factors range from China&#8217;s <strong>cost advantage diminishing <\/strong>in recent years to growing geopolitical <strong>distrust between China and the West.<\/strong><\/p>\n\n\n\n<p class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\"\n>Countries such as the EU, Mexico, India, Vietnam, Thailand, and Malaysia are seen as alternative destinations.<\/p>\n\n\n\n<p class=\"wp-block-verse\" style=\"font-size: 18.5px; text-align: justify;\"\n>However, there is concern that Europe&#8217;s energy problem will drive firms to pursue a &#8220;Europe plus one&#8221; strategy, in which they will begin to avoid investing in Europe (similar to China plus one strategy).<\/p>\n\n\n\n<\/details>\n\n\n\n<div style=\"height:13px\" aria-hidden=\"true\" class=\"wp-block-spacer\"><\/div>\n\n\n\n<p class=\"has-text-align-center\">Source: <a href=\"https:\/\/mintgenie.livemint.com\/news\/markets\/what-is-china-plus-one-strategy-mintgenie-explains-151661256972449\" target=\"_blank\" rel=\"noreferrer noopener\">Livemint<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Understanding &#8220;China plus one&#8221; is a strategy in which companies avoid investing only in China&hellip;<\/p>\n","protected":false},"author":1,"featured_media":10590,"comment_status":"closed","ping_status":"closed","template":"","portfolio-category":[428,426,450],"class_list":["post-10591","portfolio","type-portfolio","status-publish","has-post-thumbnail","hentry","portfolio-category-428","portfolio-category-newsfeed","portfolio-category-november-2022"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>What is the &quot;China plus one&quot; strategy? 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