Southeast Asia Grapples with Challenges as ‘China Plus One’ Strategy Falls Short

Why 'China plus one' is paying off less than Southeast Asia hoped

"China plus one" sent billions of dollars of investment into Southeast Asian factories. Yet the region isn't capturing enough value.

Southeast Asia Grapples with Challenges as ‘China Plus One’ Strategy Falls Short

The "China plus one" strategy that drew global manufacturers to Southeast Asia is yielding mixed results for the region. While billions of dollars have been invested in new factories, Southeast Asia is not reaping the full benefits it had anticipated. Meng-Chun Liu of the Chung-Hua Institution for Economic Research notes that while the strategy brought factories and jobs, it did not transfer the design, core components, and process know-how that…

Why the ‘China plus one’ supply chain shift is paying off less than Southeast Asia hoped

“China plus one” has been a winning strategy for Southeast Asia. The proposition was simple: Draw in global manufacturers pivoting away from China due to rising costs and geopolitical tensions, and win stronger growth, higher wages, and more jobs for local economies.  Yet despite winning billions of dollars of investment in new factories, the region […]