The Recycler Issue 331

visit www.therecycler.com for all the breaking news
ASIA HP, China, Japan, Ricoh, Sharp, Coronavirus, US – China Trade War
Japan to pull manufacturing from China
Japan has allocated ¥220 billion ($2.2 billion / €2.03 billion) for Japanese companies to shift production to Japan
and a further ¥23.5 billion ($239 million / €221 million) to relocate production to other countries.
Global supply chains continue
to be disrupted by the US-China trade
war and the coronavirus pandemic.
In response, Japan has announced
a stimulus package worth ¥108.2
trillion (US$993 billion / €917 billion),
or about 20% of Japan's economic
output.
Included in the stimulus package
is ¥220 billion ($2.2 billion / €2.03
billion) for Japanese companies to
shift production from China to
Japan. A further ¥23.5 billion ($239
million / €221 million) is available to
help Japanese companies to relocate
production to other countries.
China is Japans largest trading partner
and imports many components from
China and exports sub-assemblies back
to China for final production. This
significant two-way flow of trade is
higher for Japan than in other countries.
Japan's economy is impacted by both
the ongoing trade war and the
coronavirus pandemic.
United Nations Statistics Division
data shows that China produces 28%
of the global demand for manufacturing.
China's economy is based on
manufacturing, with the USA in second
place with 16% and Japan in third place
with 7.5%.
In May 2019 in response to the US-
China trade war, Ricoh announced
it was moving production of MFP
printer models to Thailand. Sharp
announced a similar move at the
same time.
Editor's Opinion: In the post
coronavirus and US-China trade war
era, the big question is will this trend
speed to other countries. Or will
manufacturers quietly move back
to China? ■
Issue 331
June 2020
19