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Japan Boosts Incentives to Counter China’s Factory Dominance

Toyota SUVs bound for shipment from Yokohama, Japan, in October.

Toyota SUVs bound for shipment from Yokohama, Japan, in October.

Photographer: Toru Hanai/Bloomberg

Japan continues to reward manufacturers for decoupling from its biggest trading partner: China.

The government will allocate another 222.5 billion yen ($2.1 billion) in the coming months to help fund projects that either enhance domestic manufacturing or diversify supply chains in Asia. Japan doesn’t name China, but instead says it is aiming to strengthen its partnership with ASEAN, a group of nations in southeast Asia that doesn’t include China.