GEOPOLITICAL RISKS & SUPPLY CHAIN REVIEW
In recent years, many countries including Japan have been reviewing their supply chain. In the background of the reviewing, there are deliberate supply chain disruptions and geopolitical risks, based on political motivations. Japan’s parliament passed the Economic Security Promotion Act in May 2022, and systems for 'supply chain resilience' and other measures came into effect on the 1st August 2022. Semiconductors, batteries and pharmaceuticals are expected to be designated as 'specified critical goods', and companies that manufacture and sell designated goods will receive subsidies from the Government for their efforts in supply chain reviews. Such supply chain reviews include reducing dependence on certain countries such as China for supply, diversifying to third countries and will provide opportunities for Asian countries.
This article introduces political risks as a factor in supply chain disruptions, supply chain resilience policies in various countries, particularly policies and the responses of companies in Japan.
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