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China Exit: Japanese Firms Keen on Moving to Bangladesh

At least 34 Japanese companies operating in China have indicated interest in shifting their units to Bangladesh.

On Wednesday, the Bangladesh embassy in Beijing informed the development of the Ministry of Foreign Affairs.

Dozens of Japanese companies had decided to leave China because of the trade war between the US and China and the instability of the supply chain.       

Quoting JETRO officials in Beijing, the embassy said that 34 out of 690 Japanese firms registered in China have so far unveiled a relocation plan following the announcement by the Japanese government of a stimulus package to move out of the mainland.

It also stated that JETRO officials recognized Bangladesh 's attractiveness as an investor-friendly destination.

However, they refused to name Japanese firms willing to move from China.

Earlier, the ambassador, accompanied by high ranking embassy officials, called on the Japanese ambassador to Beijing, Yutaka Yokoi, to urge the Japanese side to prefer Bangladesh as a destination for relocation by their firms.

Meanwhile, on 13 May last year, the Office of the United States Trade Representative or USTR published a list of 3,805 commodity types that could be subject to tariffs of up to 25%.

Influenced by US tariffs on Chinese-made products, Japanese firms have started to abandon China as the trade war initiated by the Trump administration escalates.

The Japanese businesses who plan to move are primarily impacted by the utter chaos of the supply chain as well as the trade war that has struck hard Japanese companies making high-value products in China.

Auto parts manufacturers Mazda Motor have decided to travel from the Jiangsu Province of China to Mexico.

Kasai Kogyo, supplier of Honda (interior door trim and roof part), is now planning to move from Wuhan to North America, Europe, and Asia.

Masudur Rahman, an official at the Bangladesh embassy in Beijing wrote the letter to an additional secretary of the ministry of foreign affairs.

In the meantime, on 12 May, Sheik F Fahim, President of the Federation of Bangladesh Chambers of Commerce and Industry or FBCCI, wrote a letter to the country representative of the Japan External Trade Organization calling for the facilitation of relocation.

Japan has introduced a national policy to be enforced throughout the post-COVID-19 timeframe to move its expenditure both domestically and outside China.

The FBCCI also wrote to the Confederation of Asian Pacific Chambers of Commerce and Industry to urge its member nations to move companies to Bangladesh.

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