Japan’s quiet push to protect its supply chains in the era of COVID-19 may prove a boon for Southeast Asian nations looking to gain from a growing backlash against China.
The government is paying about ¥12 billion ($114 million) to 30 companies to increase production in Southeast Asia, in the first round of a multibillion dollar program to diversify supply chains after the outbreak of the novel coronavirus and worsening relations between the U.S. and China.
Japan wants to cut its reliance on China and any other individual nation, and the money is likely to hasten the trend of firms moving out of China and into cheaper neighbors like Vietnam or Thailand.
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