Author: PBEC’s Hinrich Foundation Yuqing Xing a Professor of Economics of the National Graduate Institute for Policy Studies (GRIPS) in Tokyo
By 2022 Japanese foreign direct investment in China had reached US$127.6 billion, the largest among Asian countries. Many Japanese multinational enterprises used the country as an export platform for the US market. The 25% punitive tariffs imposed by the US on Chinese exports and the possibility of escalation in the trade war raised the costs and uncertainty of operating in global value chains where China is the manufacturing and assembly base, and the US is the destination market. The ongoing US–China trade war has further motivated Japanese firms to diversify their supply chains.
Read More Here: https://www.hinrichfoundation.com/research/article/trade-and-geopolitics/japan-plan-to-restructure-global-supply-chains/
