China & Foreign Direct Investment

More evidence that China is successfully becoming a player in “high-value-added” enterprises:  multinational firms investing in China are increasingly looking for a back-up location in the Far East in case China becomes too expensive.  As Site Selection recently noted:

[Multinational Corporations] are increasingly relying on the “China plus one” strategy whereby they add a new manufacturing base outside of China to insulate them from materials price spikes, take advantage of increasingly competitive costs and Free Trade Agreements. As China charts a course to move up the manufacturing value chain, the ASEAN nations of Southeast Asia have benefited greatly from this strategy by offering a combination of established manufacturing bases with efficient technologies and/or increasingly competitive inputs, especially skilled human resources, and a large market and efficient trading block regulated by the ASEAN Free Trade Agreement.