Beyond Supply Chain: The Next Phase of the “China Plus One” Strategy

Leading global expansion provider INS Global sees more companies looking across Asia-Pacific to support expansion in the region as a complement to China.

SHANGHAI, Nov. 16, 2022 /PRNewswire/ — The “China-plus-one” strategy employed by numerous multinational companies is entering a new phase, shifting away from an emphasis on alternate supply chain routes to a strategic focus on a longer-term presence in low-cost countries (LCC) in Asia, according to Wei Hsu, Managing Director of INS Global, leading global expansion provider with ten offices across Asia-Pacific.

Even pre-pandemic, many companies sought cost-competitive options to China, to alleviate supply chain risks. Asia-Pacific countries (Vietnam, Thailand, Indonesia and Malaysia) and India were popular LCC options offering reliable infrastructure, production capacity and agile supply chains. Covid worsened the situation and companies that lacked an LCC alternative in the region were at a distinct disadvantage.

New Phase of “China Plus One”

Now, the interest in diversification and agility has shifted from a focus on the physical movement of goods, production and supply chain, to an emphasis on full-time, local teams on the ground in Asia-Pacific (including China) and India, as a long-term growth strategy.

China will always be important,” says Wei Hsu, Managing Director of INS Global. “Fast-growing companies know they will need a presence there. But optimizing growth potential also means embracing agility by establishing autonomous local teams in other strategic, regional locations. That’s why INS Global is seeing more companies that are expanding in China plus other countries at the same time, instead of just expanding first in China and then to other countries.” 

But opening a location in a new country on your own typically takes several months and requires deep in-country expertise. Thus, more companies are partnering with a professional employer organization (PEO) like INS Global, to make the process of launching first-time operations in a new country seamless, fast and fully compliant.

Some key advantages of partnering with INS Global:

  • Assured legal compliance in a new country with unfamiliar labor laws
  • International payroll and HR services
  • No need for an entity of record
  • Entry into Asia within days, not months
About INS Global

INS Global is the fastest-growing organization providing worldwide business expansion services and simplifying operations without hassle or delay. Our range of services include global PEO, global employer of record and company incorporation services.

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