Japan reveals 87 projects eligible for 'China exit' subsidies

[Viet]

Hoya heads to Vietnam and Laos, while Sumitomo Rubber moves to Malaysia

Japan's Prime Minister Shinzo Abe speaks to the media at his official residence in Tokyo. The leader seeks to build a more resilient supply chain. © Reuters
Nikkei staff writers July 17, 2020


TOKYO -- Japan's Ministry of Economy, Trade and Industry on Friday unveiled the first group of Japanese companies to subsidize for shifting manufacturing out of China to Southeast Asia or Japan.

https://asia.nikkei.com/Economy/Japan-reveals-87-projects-eligible-for-China-exit-subsidies

 

[Viet]

Ok we got two: Hoya and Etsu


“
Of the companies, 30 will shift to Southeast Asia. This includes: Hoya Corporation, which will produce hard-drive parts in Vietnam and Laos; Sumitomo Rubber Industries, which will manufacture nitrile rubber gloves in Malaysia; and Shin-Etsu Chemical, which will shift its rare-earth magnet production to Vietnam, among others.

The rest 57 projects will move to Japan for their operations.

Iris Ohyama, which currently produces face masks at Chinese plants in Liaoning Province and west of Shanghai, will shift its production to its factory in Miyagi Prefecture in northern Japan.

With the help of subsidies, the company will begin producing face masks at its Kakuda factory in its home base in Miyagi Prefecture. All material will be prepared locally, independent of overseas suppliers.

Companies which are eligible for the subsidy also include producers of alcohol-based sanitiser, aviation parts, auto parts, fertiliser, medicine and paper products.

Big names such as Sharp, Shionogi, Terumo and Kaneka are among those eligible for the subsidy, according to the Nikkei Asian Review report.”

 

[fadine]

Indonesia (1)
- Flex Japan (Medical gown)

Laos (2)

• Hoya (hard disk drive parts, shared with Vietnam)
• Maruhachi (medical gown)

Malaysia (4)

• Kohoku Kogyo (Lead wire terminals for aluminum electrolytic capacitors)
• Sumitomo Rubber Industries (Nitrile rubber gloves)
• Taiyo Mining (Rare Metal)
• Toyobo (Base fabric for medical supplies)

Myanmar (1)
- Showa Gloves (commercial gloves)

Philippines (3)

• Ark Tech (precision sheet metal for semiconductor/ medical equipment inspection)
• Takeshita Pharmaceutical (medical gown)
• Yokoi Sada (face mask)

Thailand (6)

• Amtech (Disinfectant product for hemodialysis)
• Nadaka Corporation (Engine components for automobiles)
• Nikki Fron (Dipharagm)
• Nikkiso (Blood circuitry for dialysis machine, shared with Vietnam)
• Riki (medical gown)
• San Alloy (Rare Metal)

Vietnam (15)

• Able Yamauchi (medical gown)
• Akiba Die Casting (power module parts)
• Fujikin (semiconductor manufacturing equipment parts)
• Hashimoto Cross (wet wipe, alcohol wipe, medical hair caps)
• Hoya (hard disk drive parts, shared with Laos)
• Inoue Iron Works (pharmaceutical manufacturing equipment)
• Matsuoka (medical gown)
• Meiko (circuit boards for smartphones)
• Nikkiso (Blood circuitry for dialysis machine, shared with Thailand)
• Plus (surgical mask)
• Pronics (air-conditioning motor)
• Shin-Etsu (rare earth magnet)
• Showa International (long-sleeve gown, medical mask)
• Techno Global (face shield)
• Yokoo (automotive antenna)

 

[Viet]

Indonesia (1)
- Flex Japan (Medical gown)

Laos (2)

• Hoya (hard disk drive parts, shared with Vietnam)
• Maruhachi (medical gown)

Malaysia (4)

• Kohoku Kogyo (Lead wire terminals for aluminum electrolytic capacitors)
• Sumitomo Rubber Industries (Nitrile rubber gloves)
• Taiyo Mining (Rare Metal)
• Toyobo (Base fabric for medical supplies)

Myanmar (1)
- Showa Gloves (commercial gloves)

Philippines (3)

• Ark Tech (precision sheet metal for semiconductor/ medical equipment inspection)
• Takeshita Pharmaceutical (medical gown)
• Yokoi Sada (face mask)

Thailand (6)

• Amtech (Disinfectant product for hemodialysis)
• Nadaka Corporation (Engine components for automobiles)
• Nikki Fron (Dipharagm)
• Nikkiso (Blood circuitry for dialysis machine, shared with Vietnam)
• Riki (medical gown)
• San Alloy (Rare Metal)

Vietnam (15)

• Able Yamauchi (medical gown)
• Akiba Die Casting (power module parts)
• Fujikin (semiconductor manufacturing equipment parts)
• Hashimoto Cross (wet wipe, alcohol wipe, medical hair caps)
• Hoya (hard disk drive parts, shared with Laos)
• Inoue Iron Works (pharmaceutical manufacturing equipment)
• Matsuoka (medical gown)
• Meiko (circuit boards for smartphones)
• Nikkiso (Blood circuitry for dialysis machine, shared with Thailand)
• Plus (surgical mask)
• Pronics (air-conditioning motor)
• Shin-Etsu (rare earth magnet)
• Showa International (long-sleeve gown, medical mask)
• Techno Global (face shield)
• Yokoo (automotive antenna)

Great thanks for sharing the list
Good move by the Japanese

@Nike

@Indos

 

[hualushui]

According to a survey conducted by the Imperial Japanese Database, the number of Japanese companies in China in 2019 (as of May) was 13,685

87，what a huge number! I'm scared

 

[Viet]

According to a survey conducted by the Imperial Japanese Database, the number of Japanese companies in China in 2019 (as of May) was 13,685

87，what a huge number! I'm scared

Number matters my friend
Germany has over one million enterprises. But all 5 carmakers disappear then Germany has no automobile industry.
Japan just needs to remove the most 100 important manufacturers from China. You can keep the rest.

 

[tnekgoro]

According to a survey conducted by the Imperial Japanese Database, the number of Japanese companies in China in 2019 (as of May) was 13,685

87，what a huge number! I'm scared

Funny how the article doesn't mention this. Journalism nowadays is all about pushing a viewpoint.

 

[Kai Liu]

Number matters my friend
Germany has over one million enterprises. But all 5 carmakers disappear then Germany has no automobile industry.
Japan just needs to remove the most 100 important manufacturers from China. You can keep the rest.

All companies on your list are tiny shrimps...Medical mask... medical gown....gloves...auto parts.... Most probably been squeezed out by Chinese companies and multinational giant here like Honeywell, etc..
And we do want japan to remove the 'most 100 important manufacturers from China', such as Toyota, Honda, Nissian which sell 5 million here each year... But you should ask Abe if he agrees to move them to vn where they can sell 1/100 that much...

 

[Nilgiri]

Japan just needs to remove the most 100 important manufacturers from China. You can keep the rest.

Get's the ball rolling too. The companies later give experience of the move (to other companies) and tell everyone else the water is fine to join etc.

 

[fadine]

Japanese companies will keep their presence in China, just moving production overseas. After all, China is still a big market.

 

[8888888888888]

There is going to be boycott Japanese goods movement if their factories move out.

 

[FairAndUnbiased]

There is going to be boycott Japanese goods movement if their factories move out.

no need for boycott. when they produce in Vietnam, their quality will naturally lower and their price will naturally increase. they will naturally be phased out of the market.

unlike certain countries, Chinese only buy Japanese products if the quality is high.

 

[faithfulguy]

no need for boycott. when they produce in Vietnam, their quality will naturally lower and their price will naturally increase. they will naturally be phased out of the market.

unlike certain countries, Chinese only buy Japanese products if the quality is high.

Good way of looking at it. Indeed, shifts like this will affect the product. Also, the supply chain is not moving, so the cost will go up.

 

[Viet]

Get's the ball rolling too. The companies later give experience of the move (to other companies) and tell everyone else the water is fine to join etc.

Exact. It’s imperative let’s the ball starts rolling, thousands Japanese companies will follow.

All companies on your list are tiny shrimps...Medical mask... medical gown....gloves...auto parts.... Most probably been squeezed out by Chinese companies and multinational giant here like Honeywell, etc..
And we do want japan to remove the 'most 100 important manufacturers from China', such as Toyota, Honda, Nissian which sell 5 million here each year... But you should ask Abe if he agrees to move them to vn where they can sell 1/100 that much...

I see hard disc, circuit board makers among the companies. Small shrimps? Ok no problem we take every shrimp no matter big or small.

 

[beijingwalker]

Japanese companies dont' have much left to offer to China, if not leaving now, will be eaten alive by Chinese domestic competitors very soon.