The concept of "China-Plus-One" has been widely discussed, but experts believe it is often misunderstood or exaggerated. The term refers to the trend of global companies diversifying their investments beyond China to mitigate risks. However, it does not imply a wholesale abandonment of China by multinational corporations.
Instead, "China-Plus-One" represents a shift in investment patterns, with companies directing new investments to other locations while maintaining their existing operations in China. This strategy is driven by a desire to reduce dependency on a single country and enhance resilience.
Experts caution against India adopting a "China-Plus-One" strategy as its primary approach. They argue that India should focus on developing its own strengths and reducing its dependency on China. This can be achieved through import diversification, fostering domestic industry, and promoting self-reliance.
While decoupling from China is unlikely for both Western countries and India, experts emphasize the need for de-risking strategies. This involves finding alternative sources for critical imports and reducing reliance on China for essential goods and inputs.