Q. With reference to “China Plus One Strategy” consider the following statements:
1.It refers to a strategy in which companies avoid investing only in China and diversify their businesses to alternative destinations.
2.This strategy has extremely benefitted India as place of investment by the foreign companies.
Which of the statements given above is/are correct?

[A] 1 only

[B] 2 only

[C] Both 1 and 2

[D] Neither 1 nor 2

Answer: A
Notes:

Explanation –

Statement 1 is correct. China Plus One Strategy refers to a strategy in which companies avoid investing only in China and diversify their businesses to alternative destinations.

Statement 2 is incorrect. China Plus One Strategy has been useful for the EU, Mexico, Taiwan, and Vietnam. However, according to experts, apart from marginal gains in the machinery sector, India did not significantly benefit from this trade diversion.

Source: The Indian Express