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  3. Why Has Japan Mooted The Supply Chain Resilience Initiative
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K. Bharat Kumar

Why Has Japan Mooted The Supply Chain Resilience Initiative

This article discusses Japan's proposed Supply Chain Resilience Initiative (SCRI), developed in response to the disruptions caused by COVID-19 and ongoing trade tensions between China and the United States. The initiative, which includes India and Australia as key partners, aims to diversify supply chains to reduce dependency on a single country, thereby mitigating risks associated with unanticipated events like natural disasters or economic coercion. Japan's move to initiate this trilateral strategy, despite India opting out of the Regional Comprehensive Economic Partnership (RCEP), underscores the heightened importance of supply chain resilience in ensuring economic stability. The article highlights Japan's significant reliance on imports from China, particularly in sectors like electronics and machinery, and the potential economic vulnerabilities exposed when these supply chains are disrupted, as evidenced by a sharp decline in imports during the COVID-19 pandemic.

KEYWORDS: COVID-19, Economic Coercion, Japan, Supply Chain Resilience Initiative (SCRI), Trade Diversification