Photo : East Asia Forum
Photo : East Asia Forum
East Asia & The Pacific Reader | 02 August 2024, Friday | Vol.1 No. 138
Japan’s government subsidy fosters the restructuring of the Global supply chain, reports East Asia Forum
On 01 August, an opinion in East Asia Forum titled “Japan’s plan to restructure global supply chains,” looked into the integration of manufacturing and trade by the Global value chains in the contemporary era. Japan’s efficiency had dwindled post the US-China trade war, COVID-19 pandemic, and rising geopolitical tensions. In early 2005 the Japanese government projected the China Plus One strategy to the Japanese companies considering the risks of the bilateral situation between China and Japan. Former Japanese Prime Minister Shinzo Abe allocated USD 1.56 billion to assist Japanese firms to relocate to Southeast Asia. By 2022 The Japanese FDI had reached USD 127.6 billion the highest among the Asian countries, making large MNCs use this medium as an export platform for the US market. In 2023 China paralleled by accounting for 17.6 per cent of Japanese exports becoming the major host of the Japanese FDI. The decline of semiconductor chip production due to the Pandemic subsequently, made the Japanese government publish the Strategy for Semiconductors and the Digital Industry, aiming to rebuild the semiconductor industry with government subsidies. (Japan’s plan to restructure global supply chains,” East Asia Forum, 02 August 2024)
