The Japanese government launched a de -Sinicization operation and was welcomed by many Japanese companies.(Reuters)

Social Pioneer August 11, 2020

The Japanese government passed the budget on April 9 this year to allocate 2.200 billion yen (about S $ 2.8 billion) to subsidize Japanese companies to transfer some production lines from China to Japan, or transfer to Southeast Asian countries to slow down the crown disease epidemic.The serious impact of the economy, restore the interrupt supply chain at the same time.

The Ministry of Economics, Trade and Industry announced on July 17 the first batch of 87 list of Japanese companies that evacuated China, including Sharp, Takino Yoshiki Pharmaceuticals, Termao and bellization.The funds of about 900 million yuan) are eligible, including aviation parts, automotive parts, fertilizers, medicine and paper products manufacturers.

Among them, 57 companies will receive 57.4 billion yen (about 750 million yuan) subsidies to relocate the factory back to Japan, and the other 30 companies will transfer their investment to Southeast Asian countries such as Vietnam, Myanmar, Thailand, Malaysia.Haoya will move to Vietnam and Laos. Sumitomo rubber industry will produce chipped rubber gloves in Malaysia. Xinyue Chemical will transfer the production of rare earth magnets to Vietnam.

The intensified trade friction between the United States and China and the conflict of all aspects has also increased the risk of interruption of the supply chain of Japanese enterprises at any time. The Japanese government's funds to support enterprises from China to withdraw from the production line from China is to reduce Japan's excessive dependence on China's supply chain, as well asMake sure the supply chain is diversified.

In the early days of outbreaks, Japan encountered serious challenges in procurement of masks and medical protection clothing. Most of these emergency medical materials came from China. However, China faced the rapid increase in global demand and could not fully meet Japan's order requirements.

Since the outbreak of the crown, the Chinese economy has faced a severe test, and even foreign manufacturers in China have also been severely damaged.

In addition, since February this year, Japan's imports have fallen by nearly half from China, which has caused Japanese manufacturers to fail to obtain enough necessary parts, and domestic production has shrunk.

According to the Japanese Asahi Shimbun, the production of Japanese cars in China in February has fallen sharply, and the production of Nissan and Toyota in China decreased by 87.9%and 77.4%, respectively.92%, as the supply of parts from China stopped, the domestic automobile production lines in Japan also reduced production by 29.3%.

Sino -US trade frictions have not been eliminated, and the opposition between the two countries has expanded to other fields, and the crown disease cases cannot be overwhelmed, which has also caused the Japanese government to worry about further deterioration of the real economy.In this context, Japanese companies have recently set off discussions that reduce their dependence on the Chinese market again. The long -term plan of the Japanese government is to relocate high -value products back to Japan, and other manufacturing activities are scattered to lower -cost Southeast Asian countries.

The Japanese government launched a de -Sino -Chinese operation and was welcomed by many Japanese companies. Some Japanese manufacturing companies in China had already considered moved out of China. After the Japanese government issued a subsidy budget, a large number of Japanese companies worried in China may appear in the future.The evacuation trend and indirectly affect the Sino -Japanese relations that were gradually recovered.

The crown disease epidemic has disrupted the global supply chain. The Japanese government pays for the plan to assist the plans to transfer factories in China.The government's auxiliary policy has evacuated from China on a large scale. However, in the context of the long -term duration of the crown disease epidemic, more Japanese companies have learned about the importance of diversifying the supply chain.

Japanese companies have evacuated the production line in China. At present, it is only the first stage. In the future, the trend of transferring to Southeast Asian countries in low -end investment will increase. Japanese companies will find suppliers in the same country in the past. In the future, they will establish a supply chain in different countries.Japan also actively signed a free trade agreement with other countries.

According to data from the Empire Database of the Japan Investigation Company, as of May 2019, there were 13,658 Japanese companies in China, a decrease of 249 from the 2016 survey.Midea opposite and the trend of faintly emerging technology and economic decoupling have also caused Japanese companies to worry that their future interests in China will be damaged.At that time, the Japanese government will increase plans to help Japanese companies withdraw from China under the consideration of realistic interests.