Trump's trade policies drive Hong Kong industry's ‘China plus N' shift
Steve Chuang Tzu-hsiung, chairman of the Federation of Hong Kong Industries, said that this strategy was a calculated hedge against geopolitical volatility that has been years in the making.
'You don't know which madness [US President Donald] Trump will have tomorrow,' said Chuang. 'It could be 20 per cent in Vietnam or it could change tomorrow, so we have already done our homework.'
Chuang clarified that the 70 per cent diversification figure was derived from a survey conducted among the federation's members late last year.
The 'China plus N' strategy involves diversifying production and supply chains to multiple locations beyond mainland China, aiming to mitigate geopolitical and economic risks concentrated in a single country.
The proactive diversification into the Association of Southeast Asian Nations (Asean) bloc is a direct response to years of tariff uncertainty.
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