The China-U.S. trade war and the COVID-19 pandemic laid bare the need for companies to diversify supply chains outside of China. This has given rise to the “China plus one” strategy, in which multinational firms are moving to other countries, in addition to China.
For many years, western companies have invested in China, drawn in by their low production costs, and enormous domestic consumer markets.
Some Asian countries have put forward plans to attract overseas investment as companies look for another center of production or distribution. These include Thailand, Malaysia, and Vietnam, which have introduced preferential policies for overseas firms investing in the country.