Japanese Supporting US Being the First to Pullout from China
After trade war initiated between US and China, a company must had shown a movement and it was the “Asahi Kasei” of Japan that made its decision. The Japanese chemical company Asahi Kasei planned to shift its automotive components production back to Japan from China. This is an obvious sign that the US-China escalating trade war is hitting the supply chain of chemical and automotive industries.
According to the reports by NIKKEI of Japan, the strategies which switched of Asahi Kasei shifting to Japan was the result of the company’s products aforementioned being put on the potential list of additional tariffs imposed to China imported goods by the US.
Asahi Kasei has been investing heavily in China in the last 10 years, covering a wide array of industries including E&E, construction, medical, textile, etc. The company has over 35,000 employees worldwide, and Chinese staff accounts for about 10%.
Meanwhile, other leading Japanese manufacturers are also taking action to shift their production lines away from China in order to lower the risk factors of trade protectionism.
Construction and industrial machinery manufacturer Komatsu will produce the components of hydraulic excavators in the US, Mexico and Japan, according to Nikkei. The production is operating in China currently.
Another Japanese manufacturer, Iris Ohyama is planning to shift its production of appliances such as air purifiers and electric fans exported to the US. The shift from China to new plant in Korea is expected to complete by next year. These products are not on the list of additional tariffs, but the company is avoiding the threats.
Image – Professor Asahi Kasei is planning to shift its automotive components production back to Japan from China.
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