Japanese government allocates US$2.2 billion to help firms diversify supply chains
Japan,emergency stimulus package,diversify,supply chain
The Japanese government plans to provide subsidies to Japanese companies with overseas production sites to relocate back to Japan or to Southeast Asian countries as the pandemic has highlighted the dependence of Chinese manufacturing plants and how supply chains can be quickly disrupted, reported ITTO.
The local media has reported a US$2.2 billion allocation will be incorporated into the government’s emergency stimulus package to help firms diversify their supply chains. The initiative came after many manufacturers, especially car makers, suffered a shortage of parts produced in China. Japan is heavily dependent on factories in China producing wood products and where Japanese companies have plants in China they too will be viewing the need to diversify supply chains.