Japanese Investors’ Exodus From China: Boon To India – Analysis
Prime Minister Shinzo Abe’s mammoth financial relief to rescue the Japanese investors in China, advising them to withdraw their investment and shift to Japan
Prime Minister Shinzo Abe’s mammoth financial relief to rescue the Japanese investors in China, advising them to withdraw their investment and shift to Japan and other nations, is a first attempt by any nation in the world to isolate China, which eclipsed the whole world by corona virus pandemic.
The attempt signifies a bid to dwarf over dependence on China for supply chain and open new opportunities for alternative sources, despite the fact that it will trigger new row between the two nations.
It unleashes opportunity to India to be the part of the alternatives and become China+1 strategic partner. India is the fifth biggest destination for Japanese investors in ASEAN nations, and Japan is the third biggest investor in it.
The financial bonanza of US$2.2 Billion to the Japanese investors to withdraw from China is an wake up call for the nations who are excessively dependent on China for global supply chain.
India is no exception to it. More than one-third of imports of its electronic and electrical items are from China. Faster growth of mobile phone manufacturing is a case in point. From just two mobile manufacturing in 2014, India has 268 units for manufacturing mobile phones and accessories in 2019. A large number of manufacturing units depends on China for supply chain.