Economics

Japan Push to Cut China Reliance May Be Boost for Southeast Asia

  • Businesses are getting subsidies to diversify supply chains
  • Vietnam is a big investment winner in Southeast Asia
Fujikin’s production branch in Vietnam.Source: Fujikin Inc.
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Japan’s quiet push to protect its supply chains in the era of Covid-19 may prove a boon for Southeast Asian nations looking to gain from the growing backlash against China.

The Japanese government is paying about 12 billion yen ($114 million) to 30 companies to increase production in Southeast Asia, in the first round of a multi-billion dollar program to diversify supply chains after Covid-19 and worsening relations between the U.S. and China.