The Japanese government has said that it will provide subsidies to Japanese companies that shift their manufacturing setup from China to India, Bangladesh and ASEAN Countries. The decision comes as the world's supply chain was disrupted after the outbreak of COVID-19 which originated in China. The counties like Japan have now started to reduce their dependence on China and shift their investments to more reliable democratic countries like India.
According to reports, Japan aims to decentralise its supply chain by reducing its dependence on a particular country for medical and well as electronic components supply. The Japanese government has allocated 23.5 billion yen in the 2020 supplemental budget for the subsidy to encourage companies to disperse their manufacturing sites across the ASEAN region.
Besides the COVID-19 pandemic, China has been criticised by international community over its imposition of draconian national security law in Hong Kong. China has also been criticised for its expansionist ambitions, attempting to change status quo on its border with neighbouring countries like India. The ASEAN countries, Australia, India, Japan and the US have already moved against China for its aggression in the South China Sea.