Many Belgian businesses already source at least part of their supply from China, from components and raw materials to finished goods. That strategy has served them well, but a series of global supply chain shocks has made depending on a single country harder to justify. As one of Europe’s most open, trade-driven economies, with companies that rely on fast, well-connected air and road links to reach customers worldwide, Belgium feels supply disruption keenly. A China Plus One strategy offers a measured way to spread that risk without walking away from the China operations that already work. Understanding how it functions, and where it fits, is the first step towards a more resilient supply chain.
What is the China Plus One strategy?
The China Plus One strategy is a sourcing approach where a business keeps its existing operations in China and adds manufacturing or supply capacity in at least one other country. The aim is to reduce dependence on a single market and build resilience against disruption, cost swings, and trade friction.
You may also see it written as China+1, C+1, or China Plus N, the last describing companies that add several alternative locations rather than just one. The China Plus One model is not tied to a fixed number. It simply means building options beyond a single country of supply.
Adopting the strategy does not mean leaving China. For most businesses, engineering knowledge, supplier relationships, and finished-goods capacity stay in China, because few countries can match its scale, infrastructure, and mature supplier networks. The ‘plus one’ sits alongside those operations as a hedge, not a replacement.
Where the China Plus One model came from
China Plus One did not appear overnight. For years, China was the natural first choice for manufacturing, offering the scale, skilled labour, and mature supplier networks that few countries could match. As businesses grew more reliant on it, the risks of depending on a single market became harder to ignore.
Recent disruptions, from rising costs to geopolitical uncertainty, brought those risks into focus. Many businesses responded by looking for ways to diversify their supply chains while continuing to benefit from China’s strengths, and what began as a cautious hedge has grown into a mainstream resilience strategy.
More recently, rising tariffs and trade tensions have accelerated the move. A second sourcing location, once treated as a contingency, is now standard practice for many companies, with trade policy and resilience weighed alongside cost.
Why Belgian businesses are adopting China Plus One
Belgian businesses are adopting China Plus One to build more resilient, flexible supply chains, open new opportunities, and stay competitive as European trade conditions evolve. Five drivers stand out.
Reducing reliance on one market
Depending on a single country for critical supply leaves a business exposed to events it cannot control, from factory shutdowns and port congestion to policy changes and natural disasters. If one supplier or location stalls, production stalls with it. Adding a second sourcing country spreads that risk, so a disruption in one place no longer threatens the whole operation. For many Belgian firms, that resilience is now the headline reason to diversify.
Managing rising costs
China remains a major manufacturing hub, and as its economy has matured, production costs have risen in some regions.1 Exploring a second location lets Belgian importers compare production, labour, and shipping costs more effectively, and can offer more competitive unit costs for price-sensitive goods such as textiles and basic assembly, while China continues to handle higher-value or more complex work.
EU trade policy and tariff exposure
Trade policy shapes landed cost as much as the factory price does. The European Union operates trade agreements with many potential ‘plus one’ countries, and where a preferential agreement applies, goods can enter the EU at reduced or zero tariffs. Concentrating supply in a country without such access can leave a business more exposed to duties and sudden policy shifts. Spreading sourcing across markets with favourable EU trade terms helps manage that exposure.
Meeting buyer expectations
Large EU buyers increasingly ask their suppliers for clear visibility into where goods come from, as part of their own responsible-sourcing commitments. A diversified, well-documented supply base makes those expectations easier to meet, helping Belgian businesses show where their products originate and stay a trusted supplier to larger customers.
Reaching new markets
Setting up in a second country protects supply, and it can also open new commercial doors. For example, a production or sourcing base in a fast-growing Asian economy can put a business closer to demand within that region, shortening the distance between where goods are made and where they are sold. For Belgian exporters with global ambitions, proximity to these growth markets turns a defensive move into an opportunity.
Benefits and drawbacks of a China Plus One strategy
A China Plus One strategy strengthens resilience and flexibility, but it also adds cost and complexity. Weighing the two honestly is the best way to decide whether, and how far, to pursue it.
Benefits of China Plus One | Drawbacks of China Plus One |
Reduces dependence on a single country and supplier base | Adds complexity across sourcing, logistics, and supplier management |
Spreads risk from disruption, policy shifts, and price swings | Requires upfront investment in new suppliers and processes |
Can lower unit costs on price-sensitive product lines | New locations may not match China’s scale or speed |
Improves access to preferential EU trade terms | Quality and lead times can vary during the transition |
Can bring production closer to new growth markets | Managing multiple countries demands stronger oversight |
Makes supply chain transparency easier to demonstrate to buyers | Duplicated operations can raise overheads if poorly planned |
A China Plus One strategy works best when a business has clear visibility of its supply chain and knows which products carry the most risk. It suits firms with best-selling lines, long lead times, or heavy reliance on one supplier, where a disruption would be costly. It is less urgent for businesses with simple, low-value supply chains. Starting with the highest-risk products, rather than the whole operation, keeps the move manageable.
How the China Plus One model works in practice
In practice, a China Plus One model runs China and a second location as complementary hubs rather than rivals. How the work is divided between them depends on the products, the risks, and the markets served. Three configurations are common.
Duplicate production across both hubs
The simplest approach is to run the same or similar production in China and the second country. If one hub is disrupted, the other can absorb demand, which keeps supply flowing during shocks. It suits critical or best-selling products where continuity matters most, though it can raise costs because capacity is intentionally duplicated.
Split production by component or stage
Here, different parts of the process sit in different countries. China might handle complex components or final assembly, while a second location takes on labour-intensive or lower-cost stages. This plays to each country’s strengths and can improve overall cost efficiency, but it depends on smooth coordination and reliable logistics between the two hubs.
Split production by destination market
Production can also be divided by where goods are sold. A business might serve European customers from a location with favourable EU trade terms, while China supplies other regions. This shortens some routes, can reduce tariff exposure, and places supply closer to demand, which is particularly useful for firms selling into several regions.
Whichever configuration fits, the businesses that transition well tend to extend their existing China operations rather than rebuild from scratch. They keep the supplier relationships, engineering knowledge, and quality systems already working in China, and layer a second location on top gradually. Treating the ‘plus one’ as an addition, tested and scaled over time, is far less disruptive than attempting a wholesale move.
How to choose the right ‘plus one’ location
There is no single best ‘plus one’ location, only the one that fits a particular business. The right choice depends on what a company makes, where it sells, and which risks it most needs to manage. Six criteria are worth weighting against those specifics.
Total landed cost: Look beyond the factory price to the full cost of getting goods to their destination, including shipping, duties, insurance, and handling. A country with low unit costs can still prove expensive once tariffs and freight are added, so where EU preferential trade terms apply, landed costs can fall sharply.
Workforce and skills: Assess whether the local workforce has the skills and capacity your products need. Simple assembly needs a broad labour pool, while technical goods demand specialist expertise. Availability, training standards, and wage levels all shape whether a location can deliver consistent quality at scale.
Infrastructure: Reliable ports, roads, power, and digital connectivity determine how smoothly goods move. Gaps in infrastructure can add delays and cost that offset any labour saving, so it is worth checking how developed a country’s logistics network is before committing.
Preferential trade access: Check the country’s trade relationship with the European Union. Where a preferential agreement is in force, goods can enter the EU at reduced or zero tariffs, which directly affects landed cost and competitiveness. Trade status can change, so confirm the current position for each shortlisted country before deciding.
Stability: Consider political and economic stability, along with the strength of the legal system and protection for intellectual property. A stable environment reduces the risk of sudden disruption and makes long-term planning more dependable.
Quality, safety, and ethics: Confirm that suppliers can meet your quality and safety standards and operate to responsible labour and environmental practices. Strong standards protect your brand, support supply chain transparency, and help satisfy the expectations of European customers and regulators.
Key China Plus One markets to consider
Several Asian markets have emerged as strong ‘plus one’ options, each with different strengths and a different trade relationship with the European Union. The right fit depends on your product, but the following five are among the most established. Trade status is noted for each, though it can change, so confirm the current position before committing.
Vietnam
Vietnam is one of the most popular ‘plus one’ destinations, valued for electronics, consumer goods, textiles, and assembly. Competitive labour costs and fast-growing manufacturing expertise have drawn a steady flow of international investment. For Belgian businesses, the trade picture is favourable: the EU-Vietnam Free Trade Agreement has been in force since 2020, so many goods qualify for reduced or zero tariffs entering the European market. That combination of cost, capability, and preferential access makes Vietnam a common first choice.
India
India offers a large workforce, a widening manufacturing base, and strong government backing for sectors such as electronics, automotive, and semiconductors, which is making it an increasingly important sourcing market. The trade relationship is moving quickly: the EU and India concluded negotiations on a free trade agreement in 2026. The agreement is not yet in force as it completes ratification, so Belgian businesses should track its progress, since it stands to reshape tariffs and market access once applied.
Thailand
Thailand is a strong choice for automotive parts, electronics, and industrial goods, with established supplier networks and long experience supporting international manufacturers. It offers a more mature industrial base than some regional peers. On trade, the EU and Thailand are negotiating a free trade agreement, with talks having resumed in 2023, but none is yet in place. For now, Belgian firms sourcing from Thailand should plan around existing tariff arrangements, with the prospect of improved access if the negotiations lead to an agreement.
Indonesia
Indonesia offers a large labour pool and growing opportunities in consumer goods, footwear, furniture, basic electronics, and metalwork. Logistics quality can vary between regions, so location planning matters. The trade outlook is improving: the EU and Indonesia finalised negotiations on a Comprehensive Economic Partnership Agreement in 2025, and it is now moving through ratification. Once in force, it should lower barriers for Belgian businesses trading with Indonesia, making it a market worth watching closely as the agreement advances.
Bangladesh
Bangladesh is a major global hub for apparel and textiles, with competitive labour costs and deep experience in garment production. As with any market, infrastructure and logistics deserve careful assessment. On trade, Bangladesh currently enjoys duty-free access to the EU under the Everything But Arms (EBA) scheme for least-developed countries (LDCs). That status is changing: Bangladesh is set to graduate from LDC status in November 2026, with a transition period expected to preserve preferences for a few years before terms are reviewed.
Asia is not the only option. For Belgian businesses that prize speed and proximity over the lowest possible unit cost, nearshore and friendshore locations closer to Europe can be a strong ‘plus one’, trading slightly higher production costs for shorter lead times, easier oversight, and simpler logistics.
Central and Eastern Europe
Countries such as Poland, the Czech Republic, Romania, and Slovakia offer a compelling nearshore base, with strong engineering skills and established automotive and electronics clusters. As European Union member states, they sit inside the Customs Union, so goods move without tariffs or customs barriers into the rest of the EU. Lead times are short and coordination is easier across shared standards and time zones. Production costs are typically higher than in Asia, but for time-sensitive or higher-value goods, the speed and simplicity can outweigh the difference.
Turkey
Turkey is well placed for businesses serving Europe, thanks to its location bridging Europe and Asia and a skilled workforce with strengths in textiles, appliances, automotive components, and manufacturing. It has a customs union with the European Union that has been in force since 1995, which allows many industrial goods to move between Turkey and the EU without customs duties. Combined with relatively short transit times to Belgium, that makes Turkey a practical middle ground between distant low-cost production and higher-cost European manufacturing.
Mexico and Central America
Mexico and Central America are not nearshore options for Europe. For businesses that also serve North America, though, they can be a valuable friendshoring choice, with shorter transit times to the United States and established expertise in automotive, electronics, and medical devices. Mexico has a longstanding trade agreement with the European Union, in force since 2000, with a modernised version concluded and moving through ratification, while several Central American countries trade with the EU under an association agreement applied since 2013. For firms with transatlantic supply chains, this region can complement rather than replace Asian or European sourcing.
Many businesses do not choose between Asia and nearshore locations; they combine them. A tiered approach might keep high-volume, cost-sensitive production in Asia, place time-sensitive or premium lines nearer to Europe, and hold a smaller buffer of capacity closer still for rapid response. Layering sources this way builds flexibility into the supply chain, so a business can shift volumes as costs, demand, and trade conditions change.
Which industries are embracing China Plus One?
Some sectors have moved faster than others, usually those with complex supply chains, price-sensitive production, or high exposure to trade risk. Four stand out for Belgian businesses.
Electronics
Electronics and consumer goods have been among the earliest and most active adopters. Complex, just-in-time supply chains make the sector especially sensitive to disruption, and manufacturers have expanded into Vietnam and India to add capacity and reduce single-country risk while keeping advanced production in China.
Textiles and apparel
Textiles and apparel have embraced the strategy largely on cost. As Chinese wages have risen, producers have shifted volume to countries such as Vietnam, Bangladesh, and India, which offer competitive labour and deep garment-making experience. It remains one of the most diversified sectors in global sourcing.
Automotive
Automotive and industrial manufacturers rely on highly integrated supply chains, which makes resilience a priority. Many have diversified component sourcing and assembly across several countries, spreading risk while protecting the flow of parts that a single disruption could otherwise halt.
Life sciences
Life sciences and healthcare matter particularly to Belgium, home to a significant pharmaceuticals and chemicals cluster. Firms in this sector are diversifying the sourcing of ingredients, materials, and devices to reduce dependence on any single country, while holding to the strict quality and regulatory standards the field demands.
Key players adopting the China Plus One model
The strategy is easier to picture through the businesses already using it. Two well-known examples show how diversification works in practice, and how it can mean building resilience without leaving China behind.
Apple
Apple once produced around 90% of its products in China. To reduce that dependence, it has moved some assembly to India, Vietnam, and Mexico, bringing its China-based production down to roughly 75%, with around 20% of iPad and 65% of AirPod output shifting to Vietnam. Even with this diversification, China still makes the majority of Apple’s products.
MGA Entertainment
MGA Entertainment, the California-based maker of the Bratz and L.O.L. Surprise! toy ranges, long concentrated production in China. In 2025 it moved around 40% of its manufacturing to India, Vietnam, and Indonesia, while roughly 60% is expected to stay in China. The shift shows how consumer-goods makers that depend heavily on Chinese factories are adapting to changing trade conditions, while keeping China central to their supply chains.
How to get started
Moving part of your sourcing or manufacturing outside China does not have to happen overnight. A phased approach lets you reduce risk, control costs, and test what works before committing. Five steps make the process manageable.
1. Review your current supply chain
Start by understanding where you are most exposed. Which products are critical to your business, and which suppliers would cause the biggest disruption if they were delayed? Map your key suppliers and shipping routes, then identify any area where you depend heavily on a single supplier or location. This gives you a clear picture of where a second source would add the most protection, and where diversifying would make little difference. The goal is to target effort where risk is highest, rather than spreading it thinly across the whole operation.
Tip: Focus first on your best-selling products or those with the longest lead times.
2. Explore alternative sourcing locations
Next, research countries that could complement your existing operations in China. Weigh factors such as production costs, workforce skills, infrastructure, trade agreements, and proximity to your customers, and match them against what your products actually need. Preferential EU trade access is worth particular attention, since it directly affects landed cost. Rather than making a large-scale move straight away, test a small product range or a single production run in a new location to assess quality, cost, and lead times before scaling up.
Tip: Running a pilot project helps you spot potential challenges before you commit at scale.
3. Invest in supply chain visibility
The more visibility you have over inventory and shipments, the easier a multi-country supply chain becomes to manage. Use digital tools to track orders across locations and identify delays early, so you can act before a small hold-up becomes a stock shortage. Clear visibility also supports the transparency and traceability that European customers increasingly expect, making it easier to evidence where goods come from. As your supply chain grows more complex, that oversight becomes the difference between managing disruption smoothly and being caught out by it.
Tip: Even simple tracking and inventory management tools can provide valuable insights as your supply chain grows.
4. Build strong supplier relationships
Finding a supplier is only the first step. Take time to assess potential partners and check that they can support your long-term growth, not just an initial order. Strong communication and clear expectations help build trust and reduce the risk of problems later, from quality issues to missed deadlines. Visiting sites in-person, agreeing standards in writing, and starting with smaller orders all help you judge whether a supplier is the right fit before you rely on them for critical volumes.
Tip: Consider approving more than one supplier for your most important products to improve resilience.
5. Partner with an experienced logistics provider
As your supply chain becomes more diverse, logistics grows more complex. Moving goods between multiple sourcing locations, meeting customs requirements in each market, and keeping shipments visible all take careful coordination. Working with a logistics partner that understands international shipping, customs procedures, and local market conditions helps keep goods moving efficiently and reduces the administrative load on your team. Look for a provider with genuine global reach and customs expertise that can support your business as it expands into new markets.
Tip: Start with a small-scale shipping pilot before expanding to additional suppliers or markets.
Practical checklist before you go live
✓ Review your most important products and highest-risk suppliers
✓ Identify at least one alternative sourcing location
✓ Check the EU trade status of each shortlisted country
✓ Confirm origin rules so goods qualify for preferential tariffs
✓ Test a new supplier or production run before scaling
✓ Put shipment and inventory tracking tools in place
✓ Confirm your logistics and customs processes
✓ Establish contingency plans for potential disruptions
✓ Choose a logistics partner that can support cross-border growth
How DHL Express supports your China Plus One strategy
As a supply chain spreads across more countries, international shipping becomes more complex. Moving goods between sourcing locations, meeting customs requirements, and keeping shipments visible all take careful planning, and the right logistics partner can ease that load. DHL Express supports businesses shipping internationally in four main ways.
Whether a business is testing a new supplier, expanding into a new market, or building a more resilient supply chain, the right logistics support can reduce complexity and help keep goods moving. To get started, open a DHL Express Business Account.
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