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82 PCB007 MAGAZINE I NOVEMBER 2024 Editor's note: is is the first of a two-part series. Part one focuses on China. We all know of the current geopolitical chal- lenges between the U.S. and China, which have motivated companies to investigate shi- ing supply chains to other countries, including Vietnam, ailand, Mexico, India, and Malaysia while continuing to source mainly from China. is strategy is being referred to as China Plus One. In this two-part article, I will summarize the current economic trends in China, and look at the trends in wider Southeast Asia. Does China Plus One Actually Work? Why China Plus One? To understand China Plus One, we must start with the Entity List, which is a trade restriction list published by the U.S. Department of Com- merce's Bureau of Industry and Security (BIS). It consists of certain foreign persons, entities, or governments that are subject to specific license requirements for the export, re-export, and/or transfer (in-country) of specified items. Approximately 600 Chinese entities are on that list (Huawei is one well-known example). When an entity appears on the Entity List, U.S. companies must stop doing business with Article by Manfred Huschka MANFRED HUSCHKA MANAGEMENT CONSULTING (SHENZHEN) LTD.