Japan Sets $2.2BN Fund to Tempt Tech Companies out of China




/ 6 months ago
coronavirus

It’s not exactly a secret, but while some of the biggest technology giants are officially Japanese companies, many of them outsource their manufacturing designs out to 3rd-parties in China. For example, the vast majority of components in a Sony PlayStation are made in China. Largely because China can produce the required items in volume and at a relatively inexpensive cost.

In a report via Bloomberg, however, the Japanese government is reportedly looking to change that. While they don’t necessarily care where it is moved to, they are prepared to financially help their national companies. Specifically, in moving their production lines out of China.

Japan Sets Fund to Get Manufacturing Out of China

Reportedly setting aside $2.2BN from their Coronavirus Relief funding, Japan wants its companies to stop being so reliant on Chinese production. This isn’t, incidentally, any direct attack on the country. If anything, relations between China and Japan have been doing better in recent years. It is, therefore, more based on disruption to production lines seen during the Coronavirus outbreak. Put simply, Japan isn’t getting all the technology it needs!

Japan Sets $2.2BN Fund to Tempt Tech Companies out of China 1

What Do We Think?

A recent survey found that 37% of companies in Japan were already exploring the possibility of sourcing alternative production lines outside of China. As such, if they can get some money to help make the transition, it seems that a significant portion is at least willing to explore the possibility. Will they do it though? Well, in that regard, only time will tell. You can’t help but feel though that some will be exploring this possibility quite deeply.

What do you think? – Let us know in the comments!


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