To reinforce supply chains in the Indo-Pacific region, the government will support eight demonstration projects conducted by Japanese companies. The measure targets companies that are working to streamline trade procedures and to “make their supply chains visible” by sharing inventory and production information, including that on their parts suppliers in the region. The move is aimed at establishing supply chains that do not rely on China because that nation is suspected of committing human rights violations.
The government will spend a total of about 800 million yen in fiscal 2022 on eight demonstration projects in India, Australia, and Southeast Asia with an eye to strengthening the industrial competitiveness of corporate Japan in the region.
The support measure is based on an agreement reached in April 2021 among the economy ministers of Japan, Australia, and India. The three countries agreed to join hands in establishing supply chains and are calling for cooperation from Southeast Asian nations. By next spring, the nations will compile rules for the governments and companies to follow to create a better environment for sharing data on supply chains. (Abridged)