Stop The Red Flag Flying, Government To Pay CE & Appliance Companies To Manufacture Outside Of China
As Australians look to stop buying Chinese products such as Hisense TV’s Oppo Smartphones or Fisher & Paykel or ASKO appliances after blaming China for spying and the COVID-19 outbreak the Japanese Government has moved to pay CE and appliance Companies to dump Chinese manufacturers.
Blomberg has revealed that Japan’s government will start paying companies such as Sharp and Panasonic to move factories out of China and back home or to Southeast Asia, it’s not known whether the Australian Government is going to follow a similar approach by incentivizing Australian businesses to manufacture locally or in Courtiers that don’t threaten Australia.
The Japanese approach part of a new program to secure supply chains and reduce dependence on manufacturing in China.
Fifty-seven companies including privately held facemask-maker Iris Ohyama, Sharp and Panasonic will receive a total A$766 million in subsidies from the government, the Ministry of Economy, Trade and Industry said Friday.
Another 30 firms will receive money to move manufacturing to Vietnam, Myanmar, Thailand and other Southeast Asian nations, according to a separate announcement, which didn’t provide details on the amount of compensation.
The government will pay a total of $90 million in their first round, the Nikkei newspaper reported. The payments come a fund the Japanese Government earmarked in April to reduce reliance on Chinese supply chains, with the money aimed at helping companies shift factories back home or to other nations.
As U.S.-China relations deteriorate and the trade war worsens, there’s been increasing discussions in the U.S. and elsewhere about how to “decouple” economies and firms from China.
Japan’s decision is similar to a Taiwanese policy in 2019, which was aimed at bringing investment back home from China. So far, no other country has enacted a concrete policy to encourage the shift.