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Japan adds India and Bangladesh to 'China exit' subsidy destinations

Industry ministry launches second round of program to diversify supply chains

Workers assemble air conditioners for Japan's Daikin Industries at a plant in Neemrana, India.   © Reuters

TOKYO -- Japanese manufacturers will now be eligible for subsidies if they shift production out of China to India or Bangladesh, in an expansion of a government program aimed at diversifying the country's supply chains.

The government's supplementary budget for fiscal 2020 earmarked 23.5 billion yen ($221 million) for companies that move production to Southeast Asian nations. When the Ministry of Economy, Trade and Industry opened up a second round of applications on Thursday, it added "projects that contribute to the resilience of the Japan-ASEAN supply chain" to the list of qualifying moves, eyeing relocations to countries such as India and Bangladesh.

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