China +1

Move from One Country to another Typically 3 to 9 Months

Many Multi Nationals in Europe and USA aere now seeking ways out of China. While not wanting to lose the opportunity of partisipating in the China market they are realistic about being completely dependent on a China factory in the event of a diplomatic dispute related to unresolved political tentions. In addition to these factors the Covid situation demostrated the disadvantages of heavy handed policy by closing many factories and dealing with the situation in a very heavy handed manner. The cost in China continue to accelerate and SE Asia is actually becoming more competitive again. The China + 1 Strategy allows multi national and Chinese companies to keep what they have in China and replicate in a SE Asia country and there exports cost less due to lower operational costs in SE Asia and lower tarif’s on there products reaching the USA.

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