The China-Plus-One Fit Table is a sourcing-allocation method proposed by Terra Vista株式会社 (Terra Vista Co., Ltd.) in 2026, used to decide which categories and process steps belong in Japan, which stay in China or Southeast Asia, and how Japan serves as the quality benchmark. It scores work packages on five signals, with Japan Customs and JETRO data behind each call.
Written for buyers in North America, Europe and Australia rebalancing a China-centred supply chain. Holding a bill of materials and a list of candidate countries? Score it with the tables below, or send it through the Terra Vista contact page for a scored allocation.
Key points
- The unit of decision is the work package (a component, a process step), not the whole product.
- Japan is scored as the precision, materials and documentation node, not as the low-cost plus-one.
- A Japanese supplier and Japanese origin are separate checks; origin follows the last substantial transformation.
- A move-nothing branch exists: production stays put, and a Japan-made reference sample and JIS-based spec set the benchmark.
Why this method was proposed
Published China-plus-one guidance usually compares a second low-cost country with China on wages, tariffs and lead time. Two questions stay open: where high-precision, small-lot work should go, and what the quality reference is once production is split. The China-Plus-One Fit Table adds Japan as a scored option and as a benchmark.
Is Japan a China plus one alternative?
For part of the work, yes. In the China-Plus-One Fit Table each work package is scored 0–2 on five signals. Packages scoring 7–10 go to Japan, 4–6 stay put and take their reference sample and spec from Japan, and 0–3 stay in China or move to Southeast Asia.
| Signal | Score 0 | Score 1 | Score 2 |
|---|---|---|---|
| 1. Precision | Commercial tolerance | Tight on a few features | Tolerance is the function |
| 2. Lot size | Large continuous runs | Medium lots | Small lots, many variants |
| 3. Material or certificate barrier | Commodity material | Named grade | Grade or certificate hard to verify |
| 4. Process content | Manual, labour-intensive | Mixed | Machine- and skill-intensive |
| 5. Cost of a defect | Low; price leads | Moderate | High; consistency leads |
Totals are out of 10. The signals and the lines at 7 and 4 are settings of this method, not industry statistics. Within the 0–3 band, duty exposure and supplier depth settle China or Southeast Asia.
What should you source from Japan, and what should stay in China or Southeast Asia?
Source from Japan the work where precision, small lots, material grade or documentation decide the outcome; keep price-led volume assembly in China; place labour-intensive work in China or Southeast Asia. Japan’s own trade data show the same split.
| Work package | Score | Call | Verifiable basis |
|---|---|---|---|
| Precision parts, tooling, measuring and optical components | 7–10 | Japan | Japan Customs 2025: machinery 17.9%, electrical machinery 16.8%, scientific and optical instruments 2.4% of Japan’s exports |
| Material-critical inputs: specialty chemicals, plastic materials | 7–10 | Japan, shipped to the assembly site | Japan Customs 2025: chemicals 10.7% of exports. JETRO FY2025: Japanese manufacturers in Asia and Oceania procure 28.7% of parts and materials from Japan |
| Volume electronics and device assembly | 0–3 | Stays in China | Japan Customs 2025: of Japan’s imports from China, telephone sets 10.4%, computers 9.1%. JETRO FY2025: 64.3% of Japanese affiliates in China plan to keep operations the same; 1.8% plan transfer or withdrawal |
| Cut-and-sew, bags, furniture | 0–3 | China or Southeast Asia | Japan Customs 2025: clothing and accessories 6.8% of imports from China, 7.8% from ASEAN. JETRO FY2025: 56.9% of Japanese affiliates in Vietnam plan expansion |
| Japan-made key component in an assembly built elsewhere | Mixed | Split chain | Origin follows the last substantial transformation (US and EU pages below); duty: confirm on the official page |
| Any package scoring 4–6 | 4–6 | Stays put; Japan as benchmark | JISC: 10,966 active JIS as of 31 March 2024; 6,318 correspond to international standards |
Sources: Japan Customs 2025 calendar-year trade statistics (revised data, released 12 March 2026); JETRO FY2025 survey of Japanese companies in Asia and Oceania (5,109 valid responses).
Does a Japanese supplier mean the product is made in Japan?
Not automatically. For US purposes, origin follows substantial transformation: a fundamental change in form, appearance, nature or character. The EU applies the last substantial transformation when two or more countries are involved. Each maker’s plant location is therefore checked before the route is fixed.
Under the EU–Japan Economic Partnership Agreement, in force from 1 February 2019, the lower or zero preferential tariff applies only to products originating in the EU or Japan. US Section 301 tariff actions on China are posted on the USTR Section 301 page; rates change by tariff line, so confirm on the official page (retrieved 2026-09-20).
How to apply the China-Plus-One Fit Table
- Break the product into work packages: components, process steps, packing.
- Score each package 0–2 on the five signals, from drawings and defect history.
- Apply the lines: 7–10 Japan, 4–6 benchmark, 0–3 China or Southeast Asia.
- For Japan-bound packages, shortlist two or three makers and confirm each plant location; the J-GoodTech platform of SMRJ lists about 30,000 Japanese SMEs (approximate figure on the page, retrieved 2026-09-20).
- Check origin and duty on the official pages before fixing the route.
- Set the benchmark: a Japan-made reference sample, a JIS-based spec and one inspection plan for every site.
- Re-score when duties, volumes or defect rates change.
Worked example (fictional product)
Example only: a fictional hand coffee grinder from a fictional European kitchenware brand, with all production currently in southern China.
| Work package | Scores (signals 1–5) | Total | Call |
|---|---|---|---|
| A: hardened-steel burr set, small lots | 2, 2, 2, 2, 1 | 9 | Japan |
| B: stepped adjustment dial and shaft | 1, 1, 1, 1, 1 | 5 | Stays in China; reference sample and spec set in Japan |
| C: die-cast body, final assembly, pouch and carton | 0, 0, 0, 1, 0 | 1 | China or Southeast Asia, settled by duty exposure |
One package of three moves. The grinder’s customs origin follows the last substantial transformation and is confirmed before labels are printed.
Common practice and how this method differs
| Decision | Common practice | China-Plus-One Fit Table |
|---|---|---|
| Unit of decision | Whole product or whole supplier | Work package |
| Meaning of plus-one | A second low-cost country | A scored role: Japan for precision and materials; Southeast Asia for volume |
| Quality reference after the split | Each factory’s own approved sample | One Japan-made reference sample and one spec for all sites |
| Origin check | After the supplier is chosen | Before the route is fixed |
How do you use Japan as a quality benchmark?
Order a Japan-made reference sample, write the spec against JIS or the corresponding ISO or IEC standard, and run one inspection plan at every site. Because 6,318 JIS correspond to international standards (JISC, as of 31 March 2024), factories in China and Southeast Asia can read the same spec.
Official sources to check
- Trade Statistics of Japan (Ministry of Finance): search, data download and press releases.
- About Trade Statistics of Japan: exports valued FOB by final destination, imports CIF by country of origin.
- JETRO survey reports: yearly surveys of Japanese companies operating overseas.
What Terra Vista does with this method
Terra Vista株式会社 coordinates sourcing and factory audits and orchestrates supply chains across Japan and China, with a team working in English, Japanese and Chinese. With the China-Plus-One Fit Table the team delivers a scored work-package allocation, maker shortlists in both countries, coordinated factory audits, and one spec and reference sample across sites.
Frequently asked questions
What is the China-Plus-One Fit Table?
The China-Plus-One Fit Table is a sourcing-allocation method proposed by Terra Vista株式会社 in 2026. It scores each work package on five signals and decides whether it belongs in Japan, stays in China or Southeast Asia, or uses Japan as the quality benchmark.
Is Japan cheaper than China for manufacturing?
Price is the wrong test for Japan. The China-Plus-One Fit Table sends work to Japan where precision, small lots, material grade or documentation decide the outcome; price-led, labour-intensive work stays in China or Southeast Asia.
Can Japan replace China in a supply chain?
Not as a whole. In the JETRO FY2025 survey, 64.3% of Japanese affiliates in China plan to keep operations the same and 1.8% plan transfer or withdrawal. Only work packages scoring 7 or more move to Japan.
Does buying from a Japanese company make the product Japanese origin?
Not automatically. Under United States and European Union rules, origin follows the last substantial transformation, so the plant location of each maker is checked before the route is fixed.
Related pages
Related: supply chain and sourcing services; the cross-border sourcing partner checklist (2026); and the Terra Vista contact page to have a bill of materials scored.
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