Key Takeaways 1

Introduction 3

The China-Plus-One Strategy 4

Recent U.S. Reshoring and Tariff Policies Fail to Address China Dependency Risk 6

How to Evaluate Success in China-Plus-One 9

How the United States Wins in China-Plus-One 10

How China Wins in China-Plus-One 12

How a Diversifying Firm Wins in China-Plus-One 13

How a Diversifying Firm’s Host Nation Wins in China-Plus-One 14

Case Study Evaluations of China-Plus-One in the AI Economy 14

Methodology: 14

Inventec 15

Inventec: China as the Manufacturing Base 15

Inventec: United States as a Plus-One Node 18

Inventec: Firm and Taiwan’s Stakes 21

Resonac 22

Resonac: China as the Manufacturing Base 22

Resonac: United States as a Plus-One Node 24

Resonac: Firm and Japan’s Stakes 25

LS C&S 28

LS C&S: China as the Manufacturing Base 28

LS C&S: United States as a Plus-One Node 31

LS C&S: Firm and South Korea’s Stakes 33

An Example of the Right Company to Target 34

Policy Recommendations 36

Conclusion 40

Endnotes 41