The Japanese government offered 87 Japanese companies located in China subsidies totaling $653 million to encourage them to relocate to Japan or distribute in Southeast Asia. The aim is to reduce dependence on the Chinese Communist Party (CCP).

The pandemic caused by the CCP Virus has wreaked havoc on global supply chains, and the crisis revealed what many companies and countries have been assuming for some time: extreme dependence on the Chinese regime.

Japan, considered the world’s third-largest economy, took immediate and concrete measures in this regard.

According to a South China Morning Post (SCMP) report, Tokyo’s goal is to diversify supply chains, make them more resilient and less dependent on China. Japan is also encouraging domestic manufacturing to address a slowing economy, said Hideo Kawabuchi, deputy director-general of the Japan External Trade organization in Beijing, a government-related organization that promotes trade and investment into and from Japan.

Fifty-seven companies, including mask manufacturer IRIS Ohyama Inc. and Sharp Corp., will receive a total of $536 million in government subsidies to invest in production in Japan, as announced recently by Japan’s Ministry of Economy, Trade, and Industry.

Another announcement by the Ministry of Economy said that 30 other companies would receive money for investments in Vietnam, Myanmar, Thailand, and other Southeast Asian nations, without providing details on the amount of money agreed.

Already in March at a convention in Japan on supply chains, tourism, productivity, energy, and the environment, Prime Minister Shinzo Abe said Japan needed to bring production back home, or diversify production to the nations of ASEAN (Union of Southeast Asian Nations), and elsewhere, to reduce dependence on any one country such as China.

As the months passed and the pandemic continued to wreak havoc worldwide, Abe’s speech began to be increasingly accepted. Particularly when Japanese imports of electronics, computers, and auto parts heavily dependent on China, were affected by the CCP virus that halted production earlier this year, causing production disruptions in Japan.

Last month, Japan’s trade also showed that companies in upstream positions are easily affected when production activities are disrupted in China. Hence, the country needs to rebuild a resilient supply chain to prepare for and cope with another possible crisis, reported the SCMP.

For many, Japan’s movement is seen as a step to economically disengage from the Chinese regime and join the United States to form a united front against Beijing. While there is no official confirmation of this, these measures are perfectly in line with those carried out locally by the United States.

President Donald Trump, a major critic of U.S. dependence on China, signed an executive order Thursday requiring the government to buy essential drugs from U.S. companies. The measure aims to strengthen medical supply chains by encouraging the production of essential medicines and critical inputs locally.

Making the U.S. more independent from drug production had already begun to materialize when the government announced a few days ago that the Kodak company would receive $765 million loans from the federal government to incentivize local production of drugs and pharmaceutical raw materials.

As was reported when the measure was announced, the intention is to generate employment and develop the local industry. It seeks to cut off foreign pharmaceutical dependence, especially on the CCP, which produces more than 80 percent of the medicines consumed in the United States.

Last Tuesday, the news was reported by White House commercial advisor Peter Navarro, in a FOX Business radio program.

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