Diversification in Asia

Risk management has always been an integral part of good corporate governance. Disrupted supply chains during the pandemic and geopolitical tensions have prompted German companies to reassess risks associated with their China business. With our Diversification Desk, we are happy to advise you on topics related to your China business and diversification.

Why do German companies diversify their China business?

According to our latest Business Confidence Survey, almost half of the surveyed German companies have already implemented measures to mitigate risks associated with their China business. The main reason given by respondents is geopolitical tensions (83%), followed by China's sluggish economic development (45%). Generally, this is easier for large corporations than for small and medium-sized enterprises.

What do diversification strategies look like?

The most common measures include building China-independent supply chains, establishing additional business units outside of China ("China +1"), increasing research and development in China, and relocating business units to other countries. 

What are the top destinations for diversification?

Most companies that relocate activities to other countries choose the Asian region (75%), according to our latet Business Confidence Survey. In particular, India, Japan, South Korea, Thailand, Singapore, and Vietnam benefit from this trend.

Diversification Desk: We advise you on your diversification strategy

The network of German Chambers Abroad (AHKs) in Southeast and East Asia provides comprehensive and tailored advice and support to German companies across borders. If you see a need to diversify your company's operations in Asia, we will assist you as needed with contacting, market entry, and business!

The mission of the Diversification Desk is:

  • To provide a permanent, long-term point of contact for German companies that are in need for diversification solutions in the Asian region.
  • To strengthen the resilience of supply chains of German companies in Asia.
  • To provide comprehensive advice and offer support with risk management for German companies, together with the affiliated AHKs 
  • To showcase market opportunities and potential diversification strategies in the region.

Have we piqued your interest? Then contact us!

We have compiled information on six Asian countries. To download the brochures, please click on the pictures below.