The CCA Newsletter is summary of articles about the Asia Business environment that is published monthly. This month's topic is "China Plus 1".
European Chamber A Business Confidence Survey 2021 Results
"China do encounter some impacts from the China Plus 1 strategy, but the status of The World’s Factory is not in a threat.”
~Lianhe Zaobao, a Singapore Chinese Newspaper
June 13, 2021
Your input is valuable to us
China Centric Associates always welcome your questions and feedback to the subject of this newsletter. Our team will respond to your request in a timely manner. Please feel free to provide us with your newsletter topic suggestions.
Contact us at firstname.lastname@example.org
"China Plus 1" Strategy: Simple Idea, Hard Goal
For a printer friendly version or to view in PDF, click here.
For years, China had played a key role in the global supply chain and has earned the reputation as “The World’s Factory’. As the total cost of production and trade tension increases, the “China Plus 1” strategy (or “Plus 1”) has gained interest and discussion, a strategy to avoid investing only in China and diversify a company’s global operation to lower risk.
Over the years, the Plus 1 concept has further developed. Here are some findings and comments on this strategy.
More European Manufacturers Are Moving Their Supply Chains Into China Rather Than Moving Out
European Chamber released “A Business Confidence Survey 2021” in June 2021 – and annual survey of 585 European Chamber members. The following are key highlights related to China Supply Chains:
94% of American Companies Still Remain in China
Source: The American Chamber of Commerce in South China
In the 2021 White Paper on the Business Environment in China and the 2021 Special Report on the State of Business in South China conducted by The American Chamber of Commerce in South China, they highlighted that:
Keep Production sites "in China for China"
Source: Foreigners rush inside the Great Wall/ The Economist
In “Foreigners rush inside the Great Wall” of Economist (dated June 21, 2021), the author mentions:
A matured and efficient Supply Chain is not easy duplicated in short-run
Source: “中国+1”难行 世界工厂地位难撼/联合早报 (Lianhe Zaobao)
SHANGHAI ZHUHAI HONG KONG TAIPEI CLEVELAND