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The Economic Times
The Economic Times

From India to Vietnam: Why some firms are rethinking the China-plus-one strategy

Beijing/Hong Kong: A year after shifting production and sourcing out of China ​to avoid higher U.S. tariffs, some companies are learning that replicating the country's factory ecosystem is not so easy and are bringing manufacturing back. Last year, ​as President Donald Trump's tariffs set off a global rush to diversify supply chains, Heather Kuang's China-based metal casting company lost business when a major U.S. customer shifted some orders to India.

The customer has since returned with new orders after running into problems there, said Kuang, vice president of family-owned Dawang Metals, based in the northeastern Chinese city of Dandong. She declined to identify the agricultural machinery company.

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