Can moving part of your production from China to Vietnam or another country legitimately reduce your exposure to U.S. tariffs? And what risks do importers take if they rely on a supplier who simply says, “Don’t worry, we can ship it through Vietnam”?
In episode 343 of China Manufacturing Decoded, Adrian and Renaud discuss China+1 manufacturing, transshipment, and country-of-origin risks from the importer’s perspective.
They explain why legitimate China+1 manufacturing is very different from simply routing Chinese-made goods through another country, what importers should investigate before accepting this kind of proposal from a supplier, and why moving production can create significant new quality, logistics, tooling, IP, and supplier-management risks.
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Podcast sections
- 00:00 – Why country of origin and transshipment are back in focus
- 02:13 – Your supplier says they can avoid the China tariffs. What should you do?
- 03:55 – Pure transshipment and fake country-of-origin declarations
- 06:33 – What counts as substantial transformation?
- 07:46 – How country of origin may be determined for electronic products
- 09:07 – Using previous U.S. Customs rulings and requesting an advance ruling
- 12:34 – What should you ask when a supplier proposes China+1?
- 13:05 – Components, processes, validation, testing, and quality risks
- 15:25 – Who actually controls the second factory?
- 17:29 – Auditing the factory and collecting evidence
- 18:49 – Making sure the country-of-origin strategy really holds together
- 21:06 – The quality risks that exist beyond tariffs
- 22:17 – Logistics, damaged semi-finished goods, and longer lead times
- 24:35 – Why a new factory may struggle to match a mature Chinese manufacturer
- 25:38 – Tooling duplication and additional supply-chain complexity
- 26:23 – IP exposure and responsibility when something goes wrong
- 28:19 – Is China+1 actually worth doing?
- 29:39 – Final takeaways for importers
You might also like…
- Why “China Plus One” Isn’t What You Think For Electronics
- Pulling Your Tooling from Chinese Manufacturers: Key Risks and Best Practices
- Manufacturing in China for the U.S. in 2026: Tariffs, China+1, and the Real Cost of Moving Production [Podcast]
- How To Choose Which Factory Audit You Need?
- Vietnam-US Trade Deal: Trump’s Tariff Tactics & Transshipment Troubles [Podcast]
- Setting up Manufacturing in Vietnam vs China: Focus on Vietnam
- U.S. Customs and Border Protection — CROSS (Customs Rulings Online Search System)
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