Japan to Pay Companies to Leave China

The Japanese government is working to reduce its dependency on Chinese supply chains, a move prompted by the challenges faced during the COVID-19 pandemic. To achieve this, Japan has allocated $2.2 billion to encourage companies to increase production domestically or in Southeast Asia. The first round of subsidies, amounting to $560 million, has been announced, with further funds to be distributed to support investments in countries like Vietnam, the Philippines, and Thailand.

What prompted the Japanese government to reconsider its supply chain strategy?

• A natural disaster in Japan

• The outbreak of the pandemic in China

• A trade agreement with the US

• Technological advancements in Japan

What is one of the main goals of Japan's new supply chain strategy?

• To focus solely on domestic production

• To diversify supply chains to Southeast Asia

• To reduce production costs

• To increase reliance on Chinese factories

How much money did the Japanese government initially budget for the supply chain diversification program?

• $4.8 billion

• $2.2 billion

• $1 billion

• $3.5 billion

Which countries are part of Japan's strategy to diversify its supply chains?

• India, China, and South Korea

• Vietnam, the Philippines, and Thailand

• Australia, New Zealand, and Indonesia

• Russia, Mongolia, and Malaysia

How much has been allocated in the first round of subsidies for the diversification program?

• $1 billion

• $560 million

• $100 million

• $1.5 billion