Southeast Asian countries have their own opportunity. Chinese companies and foreign investors, especially G7-based companies, are shifting some of their manufacturing production out of China and into neighbouring countries so as to benefit from cheaper labour costs and also to be able to continue servicing export markets in the event of a serious deterioration in US–China relations. Vietnam and Malaysia have been among the biggest beneficiaries of this ‘China plus one’ or ‘China plus two’ strategy. Policymakers in New Delhi are hoping that the same dynamic will lead major US and other global technology companies to shift some of their China-based supply chains to India. Incredibly, in 2023 Apple still manufactured over 95 per cent of its iPhones, iPads and iMacs in China.
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