Houston to Benefit From China Plus One Supply Chain Restructuring

HOUSTON—In response to both recent trade wars and COVID-19, US supply chains will shift away from an over-reliance on China to include more expanding Asian and European markets. This shift will establish new national distribution models that will particularly benefit regions such as Houston and the Southeast, according to CBRE’s international trade report.

China is and will remain one of the largest US trade partners. However, amid recent disruptions of supply chains, many companies will adopt a more diversified “China Plus One” strategy, an increasingly common strategy for manufacturers that have the bulk of Asian operations in China but want to reduce dependency on the manufacturing giant, in large part to limit the impacts of tariffs.