While most firms are adding capacity in3.2 The diversity of FDl models in VIMI Asian FDl inflows can be explained by the China+1 effect. The shift-share analysis find that 51.0% of the increase in ViMl's share is attributed to the China+1 effect strategies (as explained in Section 2.2), access to China's market is even more critical. In fact, the most important motivation of FDl projects for every VIMI the time of project announcement, proximity to markets and customers emerged as the most frequently cited motive across all ViMl economies. This signals that while most firms are adding capacity in ViMl to hedge geopolitical risks, China