Govt. To Subsidize Moves To Diversify Output Bases
The Japanese government will financially help companies relocate or diversify their production bases from China and elsewhere. It is hoping to reduce the risk of concentrating output in certain parts of the world.
Earlier this year, shipments to Japan of face masks and other products stalled amid the global spread of the coronavirus. This was partly because the country had been largely relying on production facilities in China for such goods.
Informed sources say the Japanese government has decided to subsidize 57 projects to shift factories to Japan. Their operators include mask maker Iris Ohyama and alcohol disinfectant producer Saraya.
The government will also extend financial support to 30 other business plans to move the manufacture of masks and auto parts from China and elsewhere to Southeast Asian countries such as Vietnam and Thailand.
The subsidies will likely total about 70 billion yen, or roughly 650 million dollars.
The government is publishing the names of the subsidy recipients as early as Friday.
