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Trade war

Trade war pushes Japanese supply chains out of China

Asahi Kasei and Komatsu juggle global production to avoid US tariffs

Komatsu will move parts production done in China for hydraulic excavators assembled in the U.S. as the company responds to American tariffs against that country.   © Reuters

TOKYO -- Japanese companies are shifting production away from China to defend themselves against higher U.S. tariffs targeting Beijing as the growing trade war begins to have an impact on global supply chains.

Many overseas units for these companies make products and components exported to a third country, like the U.S. But Washington enacted a 25% tariff on $16 billion in Chinese goods Thursday, drawing a reciprocal response from Beijing. The U.S. also is considering a blanket duty on cars and autoparts, forcing companies to rethink their supply chains.

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