EXCLUSIVE: Relocation plan of Japanese Companies from China part of global diversification strategy to end supply chain dependency in one country: JETRO

Japan’s apex state-run trade promotion institutions Japan External Trade Organization (JETRO) has said that Japan’s recent decision to move Japanese companies from out of China is the part of the newly-formulated Global Diversification strategy to end supply chain dependency on a single country China.

Yasuyuki Murahashi, Chief Director-General, Japan External Trade Organisation (JETRO) India

In an exclusive interview with Asian Community News (ACN) Network, Yasuyuki Murahashi, Chief Director-General, JETRO said, “Relocation of Japanese companies from China to other countries is just a diversification of the supply chain. ​For example, over 70% of​our import ​of masks is from China but now because of the Coronavirus pandemic situation, we cannot import ​enough from China. Resultantly, Japanese companies are facing a shortage of parts and another input material as the supply chain in China has broken. It has caused a shortage of material in the Japanese market. And it is just one example.”

That’s why the Japanese government decided to diversify the source of material and products in all sectors including automobile, engineering, and medical equipment by not limiting its dependence in one country but other countries as well. For that, Japanese companies can go from China to Japan and other countries as well. Read more...