The “China Plus One” strategy—diversifying manufacturing away from a sole reliance on China by adding secondary facilities in other Asian countries—has officially transitioned from an optional corporate strategy to an industry standard in 2026.
The Logistics Challenges of Decentralized Manufacturing
While expanding production into countries like Vietnam, Thailand, India, and Malaysia reduces geopolitical and tariff risks, it introduces significant logistical complexities:
- Fragmented Freight Networks: Managing multiple origins requires orchestrating a mix of cross-border trucking, feeder vessels, and air freight.
- Customs Compliance: Navigating varying regulatory frameworks, tariff structures, and free trade agreements (FTAs) across different ASEAN borders.
- Inventory Positioning: Determining where to hold safety stock across multiple emerging markets.
How a Global Forwarder Simplifies “Plus One” Operations
Successfully executing a China Plus One model requires a centralized logistics strategy. Forward-looking businesses utilize bonded warehousing and regional distribution centers (RDCs) in strategic hubs like Thailand to consolidate components from multiple countries. By standardizing customs documentation and leveraging flexible freight networks, a capable 3PL ensures that multi-country manufacturing yields resilience rather than operational chaos.
