Insight \u00b7 Strategy

China plus one strategy: diversifying without leaving China

A China plus one strategy keeps China as a supply base while adding at least one other country for some products. The aim is resilience: less exposure to tariffs, disruption and freight shocks, without giving up the cost and capability China offers.

By Matt Buckley

Why businesses adopt China plus one

Single-country dependency on critical products
Exposure to trade remedies and changing tariffs
Freight and lead-time volatility
Customer or investor pressure on supply chain risk

Which countries to consider

Vietnam. Furniture, textiles, footwear and electronics. See manufacturing in Vietnam.
India. Textiles, engineered components and castings. See manufacturing in India.
Turkey. Near-shore for textiles and metal products. See Turkey manufacturers.
Eastern Europe and Mexico. For some engineered and near-market products.

How to do it well

Start with critical, high-spend or single-source products
Qualify the second source fully: audit, samples, trial orders
Split volume so both suppliers stay engaged
Check rules of origin; assembly alone may not change origin
Compare landed cost, including any duty preferences

Where Caventis fits

We map single-source exposure, shortlist and audit second sources and manage the transition. See our offshore sourcing service and supply chain resilience guide.

Frequently asked questions

Does China plus one mean leaving China?

No. It means keeping China where it is the best option while adding a second qualified source elsewhere for resilience.

What is the best country for China plus one?

It depends on the product. Vietnam, India and Turkey are common choices, each with different strengths. Compare them on landed cost, capability and lead time for your category.