A China Plus One strategy keeps a China supply base while developing at least one qualified source in another country. It is a diversification model, not an automatic exit from China.
How do buyers use China Plus One Strategy?
Choose the second market by process capability, supplier depth, route, origin rules, ramp time and total landed cost. Decide which products or volumes can move without creating two underused supply lines.
China Plus One Strategy: buyer checks
| Checkpoint | Question to resolve |
|---|---|
| Entity | Which legal business will contract, invoice and receive payment? |
| Site or basis | Which facility, standard or rule supports the supplier’s claim? |
| Release | What evidence must be approved before the order, shipment or payment proceeds? |
What records support China Plus One Strategy?
Retain the category risk assessment, country comparison, qualification plan, tooling ownership, validation results, allocation rules and transition milestones.
What does China Plus One Strategy not establish?
A second quotation is not a second source. Resilience exists only after the alternate supplier can produce approved goods at the required volume and route them to market.
