The Economy, Trade and Industry Ministry called for a review of the supply chain of Japanese companies, citing the lack of medical supplies caused by the spread of the new coronavirus.
Regarding "emergency items" such as face masks and ventilators, for which Japan has become highly dependent on foreign countries, the report said Japan should improve its domestic production capacity and procure such supplies from multiple countries and regions so their supply is not affected by the international situation.
The findings were presented Tuesday at a meeting of the Trade Committee of the Industrial Structure Council, which advises the trade minister.
It was also noted that the percentage of Japanese imports from China has increased since the year 2000, which is believed to be the result of cost-cutting efforts by many companies. At one time the percentage of imports from China exceeded 25% of the total.
With the spread of the pandemic, it has become impossible to import not only emergency supplies but also automobiles and electronic devices. "The risk of trade disruption became clear," this report said.
The report also calls for reducing dependence on specific countries and regions, including China, diversifying procurement routes, and changing Japan's approach to trade from "efficiency [and cost-cutting] first" to "flexible."
In addition, the report encouraged the use of IT to monitor the production status of multiple overseas suppliers to prevent overproduction in normal times, while at the same time allowing flexible procurement of suppliers in the event of an emergency.
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