Caught in the deglobalisation crosswind? De-risking by “China+1” or “In-China-For-China”

<p><strong>Purpose:</strong> Foreign firms in China, particularly those from the Global West, are in a difficult position as deglobalisation and strained international relations create risk. This paper offers research avenues on how operations and supply chain management scholars can analyse the risk factors, de-risking practices, and de-risking outcomes of foreign firms in China.</p> <p><strong>Design/methodology/approach:</strong> This paper is primarily based on interviews with managers of foreign firms’ subsidiaries and joint ventures in China between late 2019 and early 2024 and employs institutional theory to develop a conceptual framework.</p> <p><strong>Findings:</strong> Six risk factors motivating foreign firms to consider “China+1” (diversification and multi-sourcing) or “In-China-For-China” (localisation with potential bifurcation) are identified. Four pathways focusing on politics, locations, technologies, and people enable further investigation of these de-risking strategies.</p> <p><strong>Originality/value:</strong> This is the first paper to take a deeper look at perceptions, worries, and considerations of foreign firms in China and offers specific recommendations for impactful research.</p>