Japan increases subsidies for companies exiting China

A week before an India-Japan summit_ Japan s ministry of economy_ trade and industry (METI) announced it would add India and Bangladesh to a list of Asean countries to qualify for subsidies for Japanese manufacturers moving out of China. The METI announcement comes days after India_ Japan and Australia decided to advance cooperation on building trusted_ resilient supply chains. Indian PM Narendra Modi and Shinzo Abe_ the outgoing Japanese prime minister_ will hold their last virtual summit on September 10. The two countries are expected to sign the ACSA (Acquisition and Cross Servicing Agreement) which will allow military services of both countries to share logistics. (India signed a similar pact with Australia in June). It will be a fitting note to Modi's last meeting with Abe before the Japanese leader steps down given their rapport and the big steps in bilateral cooperation taken during their tenures. The summit also comes at a time when both India and Japan are locked in separate tensions with China. The SCRI (Supply Chains Resilience Initiative) is intended to build alternative supply chains. The announcement by the Japanese government will shift the onus on India to attract Japanese companies seeking alternatives to China. Officials reckon that tech sectors such as IT-ITES_ AI and IoT could reap benefits_ as could chemicals and food processing. Japanese sources said Tokyo was waiting to see the steps India takes to make its easier for Japanese companies to invest here. -Source: Times Of India