Japan manufacturing to move out of China amid risk of supply chains disruptions

Tokyo: As Beijing’s ZeroCOVID policy continues to cause disruptions to the global supply chains, Japan has begun to encourage their companies in China to move production and distribution back home.

Japan’s multinationals are impelled to undertake a broader reassessment of supply chains. They seek to move back home with tax incentives, subsidies and other benefits, reported Nikkei Asia.

The pandemic has changed the outlook of many countries towards their current set-up of supply chains and they are considering options to move out of China and diversify themselves.

Due to rising COVID-19 infections in China and the enforcement of the Zero-Covid policy by Xi Jinping, global supply chains have taken a hit as Shanghai is the main export centre of China.