What is China Plus One? SSB Interview Lecturette Topic 2023

Siddhant Sandhu
April 19, 2023
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Several international corporations are researching China, and one method is being developed to lessen their reliance on China. It represents a significant opportunity for several countries, including India. While performing at the SSB Interview, you will be benefitted from this topic like in the GD or Lecturette portion, or even in Personal Interview.

What is China Plus One?

Companies utilize China plus one as a business strategy to diversify their investment in other countries and avoid investing solely in China. This technique assists businesses in securing their operations and supply chains from any disruptions induced by China’s unpredictability.
It is also known as C+1 or simply Plus One.

Why are businesses choosing China Plus One Strategy?

Geopolitical tensions between China and the West, as well as many other countries, have created an uncertain commercial environment.
Many countries, including India, wish to reduce their dependency on China for commercial reasons.
Companies’ over-reliance on China for manufacturing and services puts them in danger in the event of a supply chain breakdown, as the globe experienced during the Covid pandemic.
China’s tough zero-COVID policy has caused industrial and supply chain disruption, pushing some enterprises to consider alternative choices.
A significant reason is the rising cost of doing business in China. Previously, firms built their operations in China due to the inexpensive production and labor expenses. However, several other countries are now providing those at significantly cheaper costs than China.
China’s draconian data privacy law has made it impossible for many Chinese internet companies to function and has left them subject to uncertainty.

Also read: Why India Should Gear Up Against China Challenge In Eastern Indian Ocean?

Possibilities for India

Several multinational corporations are preparing to relocate their operations from China to other countries with stable regimes. According to the UBS Billionaire Ambitions Report 2022, India is the biggest destination for billionaire investment worldwide.
Despite the current global trade and geopolitical scenario, India has demonstrated robust economic development. In contrast to India, China’s investment has decreased from the previous year.
India, like China, has cheap labor and a large consumer market, making it a viable alternative to China. India also has a large pool of English-speaking expertise as well as a strong legal system. Furthermore, the convenience of conducting business in India has greatly improved.
The government is attempting to take advantage of China plus one approach through the Production Linked Incentive (PLI) scheme, and has been successful in recruiting several large multinational corporations such as Apple, Samsung, and Foxconn to set up manufacturing operations in India.
The China plus one approach provides an opportunity for India to develop a big number of jobs.
In July 2022, India, the United States, and 16 other economies agreed to collaborate to construct robust supply networks.

Also read: Why Is China Strengthening Its Armed Forces?

What needs to be done

To fully benefit from China plus one plan, India should increase credit facilities, develop infrastructure, and close the skills gap.

Conclusion

China plus one is a popular strategy right now since it allows India to boost its manufacturing sector while also creating a big number of jobs. Furthermore, India must reduce its dependency on Chinese imports and the country’s trade connections with China. This is India’s chance to actualize its vision of Atma Nirbhar Bharat.

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Siddhant Sandhu

AIR-8 NCC SPL, Blogger at SSBCrackExams, Recommended from 19 SSB Allahabad, National Cyclist, Ex NCC SUO, Photography, Travelling, International Relations, Sports, Books.