Trade wars! Reuters: one third of Japanese companies are affected ETtoday Finance | ETtoday News Cloud

▲ Yen, rob bank, bank, Japanese currency, bank notes, foreign currency. (Photo / Visual China)

▲ The most affected Japanese companies are considering moving their production lines to Southeast Asia and some companies are thinking about going back to Japan. (Photo / Visual China)

Financial center / extensive report

The trade war between the US and China continues to burn and affects the global industries. Currently, a third of Japanese companies are affected.

Reuters reported that the number of Japanese companies affected by trade between the US and China rose to a third, far more than the 3% of companies surveyed in May felt it was affected. 53% of Japanese companies are concerned about the consequences of the ongoing escalation of the trade war and some companies have started exporting products to countries outside the mainland. Of the 53% of companies, the vast majority of companies said that they only feel the impact to some extent, and only 2% believe that the trade war has a huge impact.

However, as soon as the trade war continues to escalate, the consequences will be even greater. Masaki Kuwahara, senior economist at Nomura Securities, said that if the friction between the United States and the United States becomes a full trade war, this could have an impact on the Japanese export and supply chains, which in turn will affect capital and consumer spending. and ultimately will harm Japan. The general economy.

A Japanese car industry manager said the trade war had a major impact on the export of raw materials to the United States. "Even if we consider taking measures to avoid tariffs, we can still do a limited job." In addition, non-manufacturers have the same concerns. A manager of a construction company pointed out that although the direct impact of trade wars may be small, the decline of the business environment and concerns about the future may still lead to a decline in demand in the medium and long term.

The survey also found that 40% of Japanese companies believe that trade wars can affect the supply chain over the next three years, many of which are worried that the prices of raw materials and components will rise. However, only 11% of the companies have indicated that they are starting to think about how to deal with the consequences of trade wars. Many of these coping styles are considering shifting production lines and diversifying sales and purchasing routes.

Most Japanese companies involved are considering moving their production lines to Southeast Asia, and some companies are considering going back to Japan. Reuters reported that none of the Japanese companies surveyed included the US as an option for relocation. Toshiba Machinery said it plans to transfer the production line for plastic molding machines in the US from the mainland to Japan or Thailand, while Mitsubishi Electric moves the production line of the American machine tools from the Dalian base in the northeast of the mainland to the Japanese factory in Nagoya.

►The interaction between the United States and China has become the biggest risk for the Japanese economy

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