Tokyo: As a part of a new program to secure supply chains and reduce dependence on manufacturing in China, Japan’s government will start paying its companies to move out of factories out of China and back to Southeast Asia.
Fifty-seven companies including privately-held facemask-maker Iris Ohyama Inc. and Sharp Corp. will receive a total of 57.4 billion yen ($536 million) in subsidies from the government, the Ministry of Economy, Trade and Industry said Friday. Another 30 firms will receive money to move manufacturing to Vietnam, Myanmar, Thailand and other Southeast Asian nations, according to a separate announcement, which didn’t provide details on the amount of compensation.
The government will pay a total of 70 billion yen in this round, the Nikkei newspaper reported.
As U.S.-China relations deteriorate and the trade war worsens, there’s been increasing discussions in the U.S. and elsewhere about how to “decouple” economies and firms from China.