China Plus One strategy
The “China Plus One” strategy refers to a Business Strategy adopted by companies, especially multinational corporations, to diversify their production and supply chain activities by adding an alternative manufacturing or sourcing location to China.
• Business approach adopted by multinational companies.
• Diversifying manufacturing or production facilities beyond China.
Most of the companies interested to make investment in China because of their attractive economic activities, But now MNC companies finding new places other than China to establish their companies. That is called China one + strategy.
Aim :
• To reduce risks associated with solely relying on China for production.
• To mitigate geopolitical tensions, rising costs, supply chain disruptions, or trade uncertainties.
• To expanding operations to other countries and exploring new markets.
Challenges for investment in India
- Tax and red tapism
- Lack of infrastructure
- Lack of skilled labour
Measures taken
• National Infrastructure Pipeline (NIP)
• Single-window clearance system.
• Production Linked Incentive (PLI) scheme.