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  1. #1
    Thailand Expat tomcat's Avatar
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    Moving Out of China

    Japan to Pay at Least $536 Million for Companies to Leave China

    Bloomberg News July 18, 2020, 7:33 PM GMT+7

    Japan’s government will start paying its companies to move factories out of China and back home or to Southeast Asia, part of a new program to secure supply chains and reduce dependence on manufacturing in China.

    Fifty-seven companies including privately-held facemask-maker Iris Ohyama Inc. and Sharp Corp. will receive a total of 57.4 billion yen ($536 million) in subsidies from the government, the Ministry of Economy, Trade and Industry said Friday. Another 30 firms will receive money to move manufacturing to Vietnam, Myanmar, Thailand and other Southeast Asian nations, according to a separate announcement, which didn’t provide details on the amount of compensation.

    The government will pay a total of 70 billion yen in this round, the Nikkei newspaper reported. The payments come from 243.5 billion yen that the government earmarked in April to reduce reliance on Chinese supply chains, with the money aimed at helping companies shift factories back home or to other nations.

    As U.S.-China relations deteriorate and the trade war worsens, there’s been increasing discussions in the U.S. and elsewhere about how to “decouple” economies and firms from China. Japan’s decision is similar to a Taiwanese policy in 2019, which was aimed at bringing investment back home from China. So far, no other country has enacted a concrete policy to encourage the shift.

    China is Japan’s biggest trading partner under normal circumstances and Japanese companies have massive investments there. The outbreak of the coronavirus pandemic has damaged those economic ties as well as China’s image in Japan. The government of Prime Minister Shinzo Abe has been trying for years to improve relations with China after anti-Japan riots in 2012, but the fallout from the pandemic and the ongoing territorial dispute over islands and gas fields in the East China Sea have undercut those efforts.
    Majestically enthroned amid the vulgar herd

  2. #2
    Hansum Man! panama hat's Avatar
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    Good move in the long run

  3. #3
    Thailand Expat TheRealKW's Avatar
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    Wait for the predictable Chinese retaliation.

  4. #4
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    I live near an industrial area a few clicks away from Metro Manila. Two or three years ago, there was a resurgence of Japanese groups setting up companies/ factories in the vicinity. That was when Japanese were pulling out of Thailand and transferring to Vietnam or PI (because TH was siding more towards China). It was the time when the fight over the Senkaku/ Diaoyu ialands was a hot issue. For me, it was good, because more factories here = more work for Filipinos. In my subdivision (gated village) , there are loads of people who work in factories - either as security guards, assembly line work, office staff & engineers. The apartment blocks are always occupied by workers. If the Japs establish more factories here due to the CV issue, then it's good. (The Honda plant closed a few months ago, so there are workers displaced from that factory.)

    However, I don't know if they'll prefer PI as an investment zone because of the present government's close ties to China. We'll see...

  5. #5
    Hansum Man! panama hat's Avatar
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    Quote Originally Posted by katie23 View Post
    However, I don't know if they'll prefer PI as an investment zone because of the present government's close ties to China. We'll see...
    Japanese are different from most other mentalities in terms of location - they'd rather have production at home and look at the long term. They are also quite top-heavy with Japanese senior management - in the end they know that relying too much on China and the Chinese market is a negative

  6. #6
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    Mikey Bloomberg is really pushing the anti-Chinese schtick. Wonder what's in it for him.

    because TH was siding more towards China
    No- because of the military coup's and general political chaos in Thailand.

  7. #7
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    Quote Originally Posted by panama hat View Post
    Good move in the long run
    Kick off the Chinese and embrace the Japanese?

    (BTW, do we thanks to Japs or the Chinks for winning the war?)

  8. #8
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    Southeast Asia where?

  9. #9
    Hangin' Around cyrille's Avatar
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    Quote Originally Posted by panama hat View Post
    Japanese are different from most other mentalities in terms of location - they'd rather have production at home and look at the long term.
    There is a shitload of production outside of Japan, whereas the Chinese tend to buy up western brands and produce in China.

    Their management style is to attack the bottom line, which frequently does not fly in the west.

  10. #10
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    But, but- those nasty chinee might buy less things from us too.

  11. #11
    Hangin' Around cyrille's Avatar
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    'American Factory' is a good docu on Chinese management vs American workers. It's on TPB.

  12. #12
    Thailand Expat
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    Moving Out of China
    ...and building factory in USA...
    CFL Flooring to Create 300 Jobs

  13. #13
    Hansum Man! panama hat's Avatar
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    Quote Originally Posted by Klondyke View Post
    Kick off the Chinese and embrace the Japanese?
    Umm, did you read the posts?

    Quote Originally Posted by Klondyke View Post
    (BTW, do we thanks to Japs or the Chinks for winning the war?)
    Which war did the Chinese win? Why would you thank them? What does that have to do with the issue? Are you living in 2020 or just being your usual moron self?

    So many questions, so few K-answers.

  14. #14
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    Quote Originally Posted by panama hat View Post
    Japanese are different from most other mentalities in terms of location - they'd rather have production at home and look at the long term
    The zero tariff deal they did with the EU has enabled them to move production back to japan, and yes you are right they prefer home production i suspect due to quality control which they are probably even more obsessive than the Yermans over.

  15. #15
    Hansum Man! panama hat's Avatar
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    Quote Originally Posted by NamPikToot View Post
    i suspect due to quality control which they are probably even more obsessive than the Yermans over.
    Yup - high-value/quality export driven economies need to rely on quality to thrive

  16. #16
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    Quote Originally Posted by NamPikToot View Post
    due to quality control which they are probably even more obsessive than the Yermans over.
    I highly doubt that.

  17. #17
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    Quote Originally Posted by bsnub View Post
    I highly doubt that.
    you've not been around a Jap factory then, i have and quite a few too. Its not just the tolerances they get obsessed about its also cleanliness.

  18. #18
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    True story, an acquaintance was working in the Mitsubishi factory in Adelaide. They had to crate up a finished vehicle and ship it to Japan for testing.

    They were happy with all quality aspects and their only complaint was that too many screws were used sealing the crate.

    When senior executives arrived at the plant in Adelaide, they were always exasperated to see competitors cars in the employee car park. They could not fathom the lack of loyalty from the staff.

  19. #19
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    Quote Originally Posted by NamPikToot View Post
    Its not just the tolerances they get obsessed about its also cleanliness.
    So you are saying that the Japs are more focused on cleanliness than the Germans? I have been in German factories in Germany and I can tell you flat out that you are wrong.

  20. #20
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    Quote Originally Posted by bsnub View Post
    So you are saying that the Japs are more focused on cleanliness than the Germans? I have been in German factories in Germany and I can tell you flat out that you are wrong.
    You could be right, but kinda hard to make a fair comparison unless you have been in Jap factories as well

  21. #21
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    ^^ look i am not looking for an argument, i too have been in numerous yerman factories - its my opinion if your differs then that's OK with me.

  22. #22
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    Mercedes AMG in Affalterbach
    Porsche in Zuffenhausen
    VW in Wolfsburg

    All of them so clean that you could eat off the factory floor. I do not know how you could get something cleaner than what I saw in those three facilites especially AMG and Porsche. Just a simple visit inside the home of most Germans it is pretty clear to see that they are obsessed with cleanliness.

  23. #23
    Hansum Man! panama hat's Avatar
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    ^, ^^, ^^^ As a German who has lived and worked in Japan I can safely say that Japanese are more fastidious, uniform and cleanliness-obsessed . . . but there is a wide margin to third place . . . probably Korea or Switzerland.

  24. #24
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    Quote Originally Posted by panama hat View Post
    Switzerland
    Not sure about that. Have you seen the inside of the Rolex factory?

  25. #25
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    To lighten the mood. I went round the Cowley car plant in the 90's and they still had WW2 machine presses used in the Spitfire production for pressing body panels

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