Japanese Companies Expanding Overseas and Changes in Supply Chains

Chief Researcher Associate Professor LI Chunxia
Co-Researchers OHASHI Hideo (Professor, Faculty of Economics, Senshu University)
Research period 2023-2025

Research Overview

Japanese company expansion overseas is linked to supply chain changes. The main destination for Japanese companies was China until around 2010. In 2012, anti-Japanese demonstrations occurred over the Senkaku Islands; labor costs in China also rose, starting the China + 1 movement around that time. Additionally, as the US-China conflict continues, Japanese companies are forced to reorganize their supply chains. As COVID-19 infection spread across the world in 2020, causing supply chain disruptions such as city lockdowns and factory suspensions, temporary supply shortages of medical supplies such as masks and protective clothing posed a risk of dependence on China. This led Japanese companies to take steps to disperse the risk of supply chain interruption, such as returning to Japan or relocating to Southeast Asia.

Based on this situation, this research analyzes changes in the overseas expansion destinations of Japanese companies and changes in the supply chains through field surveys and data analysis. Based on this, we will make policy proposals.