Evaluating the China Plus One Logistics Strategy in 2026
For global supply chain experts, the China Plus One logistics strategy has evolved from a theoretical hedge into a measurable industrial movement. By retaining core supplier networks in China while building secondary capacities, companies are mitigating tariff and geopolitical risks. However, recent developments highlight significant infrastructural bottlenecks challenging this framework.
Impact of the China Plus One Logistics Strategy on Freight
The tactical relocation of manufacturing has delivered quantifiable results across Southeast Asia and India. In 2025, India accounted for approximately 25% of global iPhone production, reaching exports over USD 23 billion. Concurrently, Chinese foreign direct investment in ASEAN averaged USD 10 billion annually between 2022 and 2024, with manufacturing dominating the inflow. Despite these impressive investments, establishing seamless freight networks remains a critical obstacle for logistics providers.
Future-Proofing Your China Plus One Logistics Strategy
While the strategy reduces dependence on a single node, shifting operations to alternate markets introduces new freight complexities. ASEAN’s road-dependent transport systems are currently strained by under-investment and exogenous shocks, such as the Hormuz Crisis, which has amplified fuel costs for investors. Key operational challenges for logistics managers include:
- Navigating severe fuel rationing and spiking petroleum prices across alternative Southeast Asian manufacturing hubs.
- Compensating for lagging rail development that limits high-volume freight capacity.
- Aligning cross-border customs compliance and warehousing standards between China and emerging markets.
Ultimately, executing a successful strategy requires more than securing factory floor space. Shippers and forwarders must critically evaluate inbound and outbound freight capacity, road systems, and localized risks to build genuinely resilient global supply chains.
References
The Logistics Ceiling: ASEAN’s Freight Infrastructure and the China Plus One Strategy (vertexaisearch.cloud.google.com). China+1 Strategy for Manufacturing in India Growth 2026 – IMARC Engineering (vertexaisearch.cloud.google.com).
