Over 40% of Japanese companies the government recognizes as possessing sensitive technology linked to security are considering, or have already started, shifting their manufacturing bases and sources of parts supplies from China in a bid to diversify their supply chains, a Kyodo News survey found Tuesday.
The move to reduce their reliance on Beijing and mitigate security risks comes in response to rising U.S.-China competition over technological supremacy and concerns about potential concentration of medical production in China amid a shortage of medical supplies propelled by the novel coronavirus pandemic.
Forty-two companies, or 44%, of 96 respondents said they have diversified or are considering diversifying their supply chains by moving to India and Southeast Asian countries, according to the survey.