{"id":11047,"date":"2024-07-05T10:37:29","date_gmt":"2024-07-05T15:37:29","guid":{"rendered":"https:\/\/staginggembah.wpengine.com\/?p=11047"},"modified":"2025-07-29T16:51:07","modified_gmt":"2025-07-29T21:51:07","slug":"china-plus-one-supply-chain","status":"publish","type":"post","link":"https:\/\/gembah.com\/blog\/china-plus-one-supply-chain\/","title":{"rendered":"Embracing the China Plus One Strategy for Global Supply Chain Diversification"},"content":{"rendered":"<p><span class=\"post-intro-text\">In today&#8217;s rapidly evolving global landscape, businesses are faced with the pressing need to adapt their supply chain strategies to mitigate risks and maintain competitiveness. The &#8220;China Plus One&#8221; approach has emerged as a key solution, encouraging companies to diversify their manufacturing and sourcing beyond China to build resilience and flexibility in the face of changing market conditions.<\/span><!--more--><\/p>\n<div id=\"ez-toc-container\" class=\"ez-toc-v2_0_67_1 counter-hierarchy ez-toc-counter ez-toc-grey ez-toc-container-direction\">\n<div class=\"ez-toc-title-container\">\n<p class=\"ez-toc-title \" >Table of Contents<\/p>\n<span class=\"ez-toc-title-toggle\"><a href=\"#\" class=\"ez-toc-pull-right ez-toc-btn ez-toc-btn-xs ez-toc-btn-default ez-toc-toggle\" aria-label=\"Toggle Table of Content\"><span class=\"ez-toc-js-icon-con\"><span class=\"\"><span class=\"eztoc-hide\" style=\"display:none;\">Toggle<\/span><span class=\"ez-toc-icon-toggle-span\"><svg style=\"fill: #999;color:#999\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" class=\"list-377408\" width=\"20px\" height=\"20px\" viewBox=\"0 0 24 24\" fill=\"none\"><path d=\"M6 6H4v2h2V6zm14 0H8v2h12V6zM4 11h2v2H4v-2zm16 0H8v2h12v-2zM4 16h2v2H4v-2zm16 0H8v2h12v-2z\" fill=\"currentColor\"><\/path><\/svg><svg style=\"fill: #999;color:#999\" class=\"arrow-unsorted-368013\" xmlns=\"http:\/\/www.w3.org\/2000\/svg\" width=\"10px\" height=\"10px\" viewBox=\"0 0 24 24\" version=\"1.2\" baseProfile=\"tiny\"><path d=\"M18.2 9.3l-6.2-6.3-6.2 6.3c-.2.2-.3.4-.3.7s.1.5.3.7c.2.2.4.3.7.3h11c.3 0 .5-.1.7-.3.2-.2.3-.5.3-.7s-.1-.5-.3-.7zM5.8 14.7l6.2 6.3 6.2-6.3c.2-.2.3-.5.3-.7s-.1-.5-.3-.7c-.2-.2-.4-.3-.7-.3h-11c-.3 0-.5.1-.7.3-.2.2-.3.5-.3.7s.1.5.3.7z\"\/><\/svg><\/span><\/span><\/span><\/a><\/span><\/div>\n<nav><ul class='ez-toc-list ez-toc-list-level-1 eztoc-toggle-hide-by-default' ><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-1\" href=\"https:\/\/gembah.com\/blog\/china-plus-one-supply-chain\/#China_Plus_One_Overview\" title=\"China Plus One Overview\">China Plus One Overview<\/a><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><ul class='ez-toc-list-level-4' ><li class='ez-toc-heading-level-4'><a class=\"ez-toc-link ez-toc-heading-2\" href=\"https:\/\/gembah.com\/blog\/china-plus-one-supply-chain\/#Also_Read\" title=\"Also Read:\">Also Read:<\/a><\/li><\/ul><\/li><\/ul><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-3\" href=\"https:\/\/gembah.com\/blog\/china-plus-one-supply-chain\/#The_Risks_of_Over-Reliance_on_China\" title=\"The Risks of Over-Reliance on China\">The Risks of Over-Reliance on China<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-4\" href=\"https:\/\/gembah.com\/blog\/china-plus-one-supply-chain\/#Leveraging_Technology_for_Supply_Chain_Visibility\" title=\"Leveraging Technology for Supply Chain Visibility\">Leveraging Technology for Supply Chain Visibility<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-5\" href=\"https:\/\/gembah.com\/blog\/china-plus-one-supply-chain\/#Choosing_New_Manufacturing_Locations\" title=\"Choosing New Manufacturing Locations\">Choosing New Manufacturing Locations<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-6\" href=\"https:\/\/gembah.com\/blog\/china-plus-one-supply-chain\/#Mexico_A_Rising_Star_in_the_China_Plus_One_Landscape\" title=\"Mexico: A Rising Star in the China Plus One Landscape\">Mexico: A Rising Star in the China Plus One Landscape<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-7\" href=\"https:\/\/gembah.com\/blog\/china-plus-one-supply-chain\/#ASEAN_Harnessing_the_Potential_of_Southeast_Asia\" title=\"ASEAN: Harnessing the Potential of Southeast Asia\">ASEAN: Harnessing the Potential of Southeast Asia<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-8\" href=\"https:\/\/gembah.com\/blog\/china-plus-one-supply-chain\/#Chinas_Dominance_in_Global_Manufacturing\" title=\"China&#8217;s Dominance in Global Manufacturing\">China&#8217;s Dominance in Global Manufacturing<\/a><\/li><li class='ez-toc-page-1 ez-toc-heading-level-2'><a class=\"ez-toc-link ez-toc-heading-9\" href=\"https:\/\/gembah.com\/blog\/china-plus-one-supply-chain\/#Navigate_the_China_Plus_One_Strategy_with_Confidence\" title=\"Navigate the China Plus One Strategy with Confidence\">Navigate the China Plus One Strategy with Confidence<\/a><\/li><\/ul><\/nav><\/div>\n<h2><span class=\"ez-toc-section\" id=\"China_Plus_One_Overview\"><\/span>China Plus One Overview<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<ul class=\"key-summary\">\n<li>Diversification is crucial for building supply chain resilience and adaptability.<\/li>\n<li>ASEAN and Mexico are attractive alternatives for manufacturing diversification.<\/li>\n<li>Technology helps companies gain supply chain visibility and identify risks.<\/li>\n<li>Key factors in choosing new locations include geopolitical relationships and economic stability.<\/li>\n<li>China remains a dominant force in global manufacturing despite diversification efforts.<\/li>\n<\/ul>\n<h4><span class=\"ez-toc-section\" id=\"Also_Read\"><\/span>Also Read:<span class=\"ez-toc-section-end\"><\/span><\/h4>\n<ul>\n<li><a href=\"https:\/\/gembah.com\/blog\/supply-chain-strategies\/\"><strong>Top 6 Supply Chain Management Strategies<\/strong><\/a><\/li>\n<li><strong><a href=\"https:\/\/gembah.com\/blog\/china-supply-chain-overview\/\">China Supply Chain Management Overview<\/a><\/strong><\/li>\n<li><strong><a href=\"https:\/\/gembah.com\/countries\/china\/\">Finding Manufacturers in China<\/a><\/strong><\/li>\n<\/ul>\n<h2><span class=\"ez-toc-section\" id=\"The_Risks_of_Over-Reliance_on_China\"><\/span>The Risks of Over-Reliance on China<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>While China has been the global manufacturing powerhouse for over a decade, accounting for <a href=\"https:\/\/www.safeguardglobal.com\/resources\/top-10-manufacturing-countries-in-the-world-2023\/\" target=\"_blank\" rel=\"noopener\">28.7% of global manufacturing<\/a> output in 2019, heavy reliance on the country comes with significant risks. These include delays, quality control issues, rising costs, economic tensions, and geopolitical uncertainties.<\/p>\n<p>Recent events, such as the U.S.-China trade war and China&#8217;s strict zero-COVID policy, have further underscored the dangers of over-dependence on a single country for manufacturing and sourcing.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Leveraging_Technology_for_Supply_Chain_Visibility\"><\/span>Leveraging Technology for Supply Chain Visibility<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>To effectively implement a China Plus One strategy, companies must gain comprehensive visibility into their supply chains. Innovative tools that associate components with suppliers&#8217; manufacturing locations can help identify risks at the bill of materials, parts, and manufacturing levels.<\/p>\n<p>Additionally, artificial intelligence and machine learning can analyze vast amounts of data to identify optimal sourcing locations and predict potential disruptions, enabling companies to make informed decisions and ensure supply chain continuity.<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-11317\" src=\"https:\/\/gembah.com\/wp-content\/uploads\/2024\/07\/Man-using-technology.jpg\" alt=\"Man in a warehouse using technology as part of the supply chain.\" width=\"600\" height=\"316\" srcset=\"https:\/\/gembah.com\/wp-content\/uploads\/2024\/07\/Man-using-technology.jpg 1000w, https:\/\/gembah.com\/wp-content\/uploads\/2024\/07\/Man-using-technology-300x158.jpg 300w, https:\/\/gembah.com\/wp-content\/uploads\/2024\/07\/Man-using-technology-768x405.jpg 768w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Choosing_New_Manufacturing_Locations\"><\/span>Choosing New Manufacturing Locations<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>As businesses seek to diversify their supply chains, careful consideration must be given to several key factors when selecting new <a href=\"\/countries\/\">manufacturing locations<\/a>. These include strategic geographical positioning, geopolitical relationships, economic and financial stability, political stability, favorable investment climate, market openness, trade liberalization, infrastructure quality, and competitive labor capabilities.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Mexico_A_Rising_Star_in_the_China_Plus_One_Landscape\"><\/span>Mexico: A Rising Star in the China Plus One Landscape<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Mexico has emerged as a compelling option for companies looking to diversify their manufacturing base, particularly for North American brands. With competitive labor costs, low distribution expenses, and streamlined logistics, Mexico offers an attractive alternative to China.<\/p>\n<p><a href=\"https:\/\/gembah.com\/countries\/mexico\/\" data-wpil=\"url\">Mexican manufacturers<\/a> have significantly enhanced their electronics and printed circuit board assembly (PCBA) manufacturing capabilities, making it an ideal location for U.S. companies with <a href=\"https:\/\/gembah.com\/expertise\/technology\/\">electronics products<\/a> seeking to nearshore their operations.<\/p>\n<div class=\"banner\">\r\n    <div class=\"title\">\r\n        <span class=\"light\">Launch Your Product Faster<br> with<\/span>\r\n        <span class=\"bold\">Gembah<\/span>\r\n    <\/div>\r\n    <div class=\"subtitle\">\r\n        <span>1000\u2019s of vetted factories, designers, and experts are a few clicks away!<\/span>\r\n    <\/div>\r\n    <a href=\"\/expert-help\/\" target=\"_blank\" class=\"cta-button\">Get Started Now<\/a>\r\n<\/div>\r\n<style>\r\n    .banner {\r\n        background-color: #0692FB;\r\n        background-image: radial-gradient(rgba(255, 255, 255, 0.07) 1.6px, transparent 1px);\r\n        background-size: 7px 7px;\r\n        color: #ffffff;\r\n        padding: 30px;\r\n        text-align: center;\r\n        font-family: Arial, sans-serif;\r\n        border-radius: 12px;\r\n        max-width: 540px;\r\n        margin: 20px auto 40px;\r\n        box-shadow: 0px 8px 16px rgba(0, 0, 0, 0.2);\r\n        display: inline-block;\r\n    }\r\n\r\n    .banner .title {\r\n        font-family: 'Poppins', sans-serif;\r\n        font-size: 28px;\r\n        margin: 5px 20px 0;\r\n        text-shadow: 1px 1px 4px rgba(0, 0, 0, 0.2);\r\n        line-height: 1.2;\r\n        color:#ffffff!important;\r\n    }\r\n\r\n    .banner .title .light {\r\n        font-weight: 400;\r\n    }\r\n\r\n    .banner .title .bold {\r\n        font-weight: 900;\r\n    }\r\n\r\n    .banner .subtitle {\r\n        font-family: 'Jost', sans-serif;\r\n        font-size: 18px;\r\n        font-weight: 400;\r\n        line-height: 1.25;\r\n        margin: 14px 60px 20px;\r\n        text-shadow: 1px 1px 4px rgba(0, 0, 0, 0.2);\r\n        word-spacing: 0.8px;\r\n        color:#ffffff!important;\r\n    }\r\n\r\n    \/* More specific selector with !important overrides *\/\r\n    .banner a.cta-button {\r\n        background-color: #fdbc52 !important;\r\n        color: #1e1e1e !important;\r\n        font-family: 'Jost', sans-serif !important;\r\n        font-size: 20px !important;\r\n        font-weight: 900 !important;\r\n        padding: 9px 19px !important;\r\n        border-radius: 6px !important;\r\n        margin: 15px 0 10px !important;\r\n        cursor: pointer !important;\r\n        text-decoration: none !important;\r\n        display: inline-block !important;\r\n        transition: background-color 0.3s ease !important;\r\n        box-shadow: 0px 6px 12px rgba(0, 0, 0, 0.3) !important;\r\n    }\r\n\r\n    .banner a.cta-button:hover {\r\n        background-color: #e6a946 !important;\r\n    }\r\n\r\n    @media (max-width: 600px) {\r\n        .banner {\r\n            max-width: 90%;\r\n            margin: 20px auto;\r\n        }\r\n\r\n        .banner .title {\r\n            font-size: 20px;\r\n            margin: 0px 0;\r\n        }\r\n\r\n        .banner .subtitle {\r\n            font-size: 16px;\r\n            font-weight: 500;\r\n            margin: 20px 20px 0;\r\n            margin-bottom: 30px;\r\n        }\r\n\r\n        .banner a.cta-button {\r\n            font-size: 16px !important;\r\n            padding: 10px !important;\r\n            width: 100% !important;\r\n        }\r\n    }\r\n<\/style>\r\n\n<h2><span class=\"ez-toc-section\" id=\"ASEAN_Harnessing_the_Potential_of_Southeast_Asia\"><\/span>ASEAN: Harnessing the Potential of Southeast Asia<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>The Association of Southeast Asian Nations (ASEAN) has also gained prominence as a promising China Plus One destination. With its strategic proximity to China, strong economic ties with both China and the U.S., and political stability, ASEAN countries provide a favorable environment for businesses seeking to diversify their manufacturing base. Many Chinese factory owners are buying or opening <a href=\"https:\/\/gembah.com\/countries\/vietnam\/\" data-wpil=\"url\">factories in Vietnam<\/a> to reduce their exposure to the shift away from China.<\/p>\n<p>This trend is further evidence of the growing importance of ASEAN in the China Plus One strategy. Notable <a href=\"https:\/\/gembah.com\/blog\/apple-invests-in-vietnam-china-plus-one\/\">investments in the region<\/a> include chip-testing <a href=\"\/services\/product-engineering-services\/expert-manufacturing-companies-in-malaysia\/\">factories in Malaysia<\/a>, electric vehicle <a href=\"\/services\/product-engineering-services\/manufacturing-partner-in-indonesia\/\">supply chains in Indonesia<\/a>, and electronics facilities in Vietnam.<\/p>\n<h2><span class=\"ez-toc-section\" id=\"Chinas_Dominance_in_Global_Manufacturing\"><\/span>China&#8217;s Dominance in Global Manufacturing<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Despite the growing importance of the China Plus One strategy, it is crucial to acknowledge China&#8217;s continued dominance in global manufacturing. In 2019, China&#8217;s manufacturing sector contributed <strong>nearly $4 trillion<\/strong>, accounting for almost <strong>30% of the country&#8217;s total economic outpu<\/strong>t.<\/p>\n<p>While diversification is essential, <a href=\"https:\/\/gembah.com\/countries\/china\/\" data-wpil=\"url\">Chinese manufacturing<\/a> cannot be ignored, and businesses must strike a balance between mitigating risks and leveraging China&#8217;s strengths. As global supply chains continue to navigate the complexities and uncertainties of the modern world, embracing the China Plus One strategy has become a critical imperative for businesses seeking to build resilience and adaptability.<\/p>\n<p>By diversifying <a href=\"https:\/\/gembah.com\/blog\/moving-manufacturing-out-of-china\/\">manufacturing outside of\u00a0China<\/a>, leveraging technology for supply chain visibility, and exploring promising alternatives like Mexico and ASEAN countries, companies can mitigate risks, ensure continuity, and remain competitive in an ever-changing global market.<\/p>\n<p><img decoding=\"async\" class=\"alignnone wp-image-11318\" src=\"https:\/\/gembah.com\/wp-content\/uploads\/2024\/07\/Chinese-manufacturing-workers.jpg\" alt=\"Chinese workers manufacturing a product together in a factory.\" width=\"600\" height=\"400\" srcset=\"https:\/\/gembah.com\/wp-content\/uploads\/2024\/07\/Chinese-manufacturing-workers.jpg 1000w, https:\/\/gembah.com\/wp-content\/uploads\/2024\/07\/Chinese-manufacturing-workers-300x200.jpg 300w, https:\/\/gembah.com\/wp-content\/uploads\/2024\/07\/Chinese-manufacturing-workers-768x512.jpg 768w\" sizes=\"(max-width: 600px) 100vw, 600px\" \/><\/p>\n<h2><span class=\"ez-toc-section\" id=\"Navigate_the_China_Plus_One_Strategy_with_Confidence\"><\/span>Navigate the China Plus One Strategy with Confidence<span class=\"ez-toc-section-end\"><\/span><\/h2>\n<p>Overreliance on a single country for manufacturing can expose your business to significant risks. Embracing China Plus One is crucial for building supply chain resilience and adaptability.<\/p>\n<p><a href=\"\/\">Gembah<\/a> can guide you in diversifying your manufacturing base, leveraging their extensive network and deep understanding of global market dynamics. They&#8217;ll help you identify the most suitable locations, considering factors such as geographical positioning and economic stability.<\/p>\n<p>With Gembah&#8217;s cutting-edge technology solutions, you can gain complete supply chain visibility, identify potential risks, and make informed decisions to ensure continuity.<\/p>\n<p>Contact Gembah to build a resilient, <a href=\"https:\/\/gembah.com\/blog\/supply-chain-diversification\/\">diversified supply chain<\/a> that positions your business for long-term success in an ever-changing global landscape.<\/p>\n<p><iframe title=\"The China Plus One Strategy!\" width=\"1200\" height=\"675\" src=\"https:\/\/www.youtube.com\/embed\/31QS8cB4KEE?feature=oembed\" frameborder=\"0\" allow=\"accelerometer; autoplay; clipboard-write; encrypted-media; gyroscope; picture-in-picture; web-share\" referrerpolicy=\"strict-origin-when-cross-origin\" allowfullscreen><\/iframe><\/p>\n","protected":false},"excerpt":{"rendered":"<p>In today&#8217;s rapidly evolving global landscape, businesses are faced with the pressing need to adapt their supply chain strategies to mitigate risks and maintain competitiveness. The &#8220;China Plus One&#8221; approach has emerged as a key solution, encouraging companies to diversify their manufacturing and sourcing beyond China to build resilience and flexibility in the face of &#8230; <a title=\"Embracing the China Plus One Strategy for Global Supply Chain Diversification\" class=\"read-more\" href=\"https:\/\/gembah.com\/blog\/china-plus-one-supply-chain\/\" aria-label=\"More on Embracing the China Plus One Strategy for Global Supply Chain Diversification\">Read more<\/a><\/p>\n","protected":false},"author":14,"featured_media":11048,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"content-type":"","inline_featured_image":false,"footnotes":""},"categories":[4],"tags":[],"topics":[10,80,20,21],"class_list":["post-11047","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blog","topics-china","topics-mexico","topics-supply-chain","topics-vietnam"],"acf":[],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin v20.1 (Yoast SEO v23.5) - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>China Plus One Strategy for Global Supply Chain Diversification<\/title>\n<meta name=\"description\" content=\"Explore the China Plus One strategy for diversifying global supply chains beyond China. 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