Japanese companies are pulling back from China at a pace not seen in years. The shift is being driven by more than weak Chinese demand. Geopolitical tensions, tougher operating conditions, rising costs and increasingly formidable Chinese competitors are changing the calculation for Japan Inc.
The US is trying to court the Japanese through an aggressive reindustrialisation push, while Southeast Asia is already attracting supply-chain diversification. India, meanwhile, is emerging as a different kind of beneficiary with a large domestic market that can support manufacturing, exports and financial investment at the same time.
