Japanese companies try to reduce their reliance on Chinese manufacturing

AT THE END of the month the production line of a Toshiba factory in Dalian will come to a halt, 30 years after the Japanese electronics giant opened it in the north-eastern Chinese city. Once a totemic example of global supply chains expanding into China, the closure exemplifies how these are being reconfigured. The short answer is: delicately and at the margin.Toshiba’s plant in Dalian has spanned a sea change in Asian business patterns. When it opened, Japan was the undisputed linchpin of the region’s trade and manufacturing networks. By 2019 Japan’s $390bn in intermediate-goods trade with big Asian economies was vying for runner-up status with South Korea and Taiwan. China, with $935bn-worth, was way ahead.