Le Grand Continent | The Future of the Sino-Indian Rivalry

“China+1: this is the name given to the diversification strategy adopted by a number of countries and companies to reduce their dependence on China as a single manufacturing or supply center. This approach involves exploring alternative locations beyond China to transform the geography of supply chains and minimize the risks associated with over-reliance on a single supplier. It reflects a broader effort by countries and businesses to counterbalance China's economic dominance and adapt to changes in global power relations. Analyzes of trade and investment data over the past three years indicate that the European Union, Mexico, Taiwan, Malaysia and Vietnam have become the main beneficiaries of the China+1 strategy in sectors such as machine tools, automobiles, transportation equipment and electrical equipment.

India is also seeking to capitalize on concern over China's dominance of global supply chains by reforming its economic and regulatory framework with a view to boosting its attractiveness. India's strategy thus includes three components: reducing its dependence on China, attracting investments from those seeking to diversify their trade relations and adopting a protectionist policy by introducing customs duties on imports.”

This article was originally published in French, Italian and Spanish by the Le Grand Continent. The unedited English version of the article can be found here.