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Relocating Japanese Supply Chains

The idea has been floating around that Canada could stand to gain some business and investment from Japan as it encourages its companies to shift supply chains away from China due to COVID-19. However, according to leading trade experts, this is not a realistic scenario. This idea was initially floated after Tokyo decided to offer a stimulus package of funds to Japanese multinationals on the condition of moving their operations back home. The idea is that Japan, with some pre-existing manufacturing relationships in Canada, may now look at Canadian projects as a way to gain a stronger foothold in North America. However, Canada’s higher wage levels, relatively low population and production capacities limit this possibility immensely.

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