JAPAN, India and Australia are seeking to build stronger supply chains to counter China’s dominance as trade and geopolitical tensions escalate across the region, Bloomberg News quoted sources in Tokyo and New Delhi with knowledge of the matter as saying yesterday. The three nations are discussing building a “supply chain resilience initiative,” according to the sources. The talks are at a working level currently, but Japan would like to bring them to a higher level at some point, according to a source in Tokyo. India’s government is considering the plan and will make a decision soon about whether to participate, the sources said. The discussions were earlier reported by The Economic Times. The Sino-U.S. spat and the disruptions to trade caused by COVID-19 has spurred talk about diversification. Japan is trying to pare its reliance on Chinese factories, with the government subsidizing some companies to shift or expand operations in Japan and Southeast Asia. So far 87 firms are participating in the program, which will pay out 243.5 billion yen (US$3.15 billion). Along with the United States, Japan, Australia and India are members of the Quadrilateral Security Dialogue, or Quad, a loose grouping for national security consultation. A spokesperson for Australia’s foreign ministry said the nation is working with a range of partners to ensure supply chains are kept open and resilient during the recovery from COVID-19, but did not confirm whether it was working on a deal with Japan and India. There’s no clear agreement between the three nations on any action yet, an official from Japan’s trade ministry said. Earlier this year Australia and India agreed to work together on diversifying supply chains. The new proposal will seek to lean on such bilateral agreements between countries and put in place further measures for trade facilitation and attracting foreign direct investment in the Indo-Pacific region, the sources said. Nations from Southeast Asia would also be invited to participate, they said. (SD-Agencies) | 