Japan is continuing its efforts to diversify its supply chains and beef up factories at home after Covid-19 and trade wars exposed the risk of being too concentrated in outside markets including China. The government announced the distribution of 146 subsidies totaling 247.8 billion yen ($2.4 billion) to businesses fortifying their domestic supply chains, the trade ministry said Friday. Some 57 applications received 57.4 billion yen in an earlier round of payments this summer as part of a program launched earlier this year. Focus now shifts to whether a third extra budget being drafted for economic stimulus will include new money for supply chains. In a key policy speech last month, Prime Minister Yoshihide Suga said he was aware of concern that the country’s supply chains have become vulnerable and he pledged to help diversify them.

Source: Mint November 20, 2020 09:45 UTC