Japanese companies focus on supply chains, amid rising US-China trade tensions

MLex Market Insight

The trade confrontation between the US and China is reverberating in Japan, where businesses are facing a flurry of regulations imposed as a result of the growing tension between the two powers. It’s a particularly complex issue for Japan, given that China is the country’s largest trading partner and the US its second-largest. The geopolitical concerns have prompted some Japanese businesses to diversify their supply chains; however, given the size of the Chinese market, Japanese companies aren’t expected to walk away from China any time soon.