The global China+1 strategy is entering a more complex phase as companies reassess the cost and practicality of moving manufacturing outside China. A Reuters report published on 14 September found that some companies that shifted production in response to tariffs are reconsidering those decisions because alternative locations can lack China's extensive supplier networks, skilled labour, infrastructure and manufacturing ecosystem.

The development has implications for India's rubber-component and industrial manufacturing sectors. China+1 strategies have encouraged global companies to diversify sourcing and manufacturing, creating potential opportunities for Indian suppliers of hoses, seals, gaskets, moulded components, rubber-metal parts and other engineered products.

However, the latest developments indicate that diversification decisions depend on the complete manufacturing ecosystem rather than tariffs alone. For Indian rubber manufacturers, competitiveness will increasingly involve quality consistency, delivery reliability, scale, automation, certification, logistics and the ability to integrate into global OEM supply chains. This could make technology investment and supply-chain capability increasingly important for MSMEs seeking international customers.