India, Japan, Australia keen to boost supply chain security by reducing reliance on China
- The Supply Chain Resilience Initiative will look to secure supply chains and reduce dependence on China in wake of the disruptions caused by the coronavirus
- The supply chain initiative could also eventually be expanded to include the 10 members of the Association of Southeast Asian Nations (Asean)
Japan, India and Australia are moving towards a new trilateral effort to ensure global supply chains and reduce dependence on China in the event of another catastrophe like the coronavirus occurring in the future.
The coronavirus outbreak has brought to the fore the importance of diversification away from trade and supply chain dependence on China for many countries, particularly key partners like Japan, India and Australia.
Japan’s Ministry of Economy, Trade and Industry broached the idea with the Indian government around a month ago and informal talks have been ongoing, according to economists with knowledge of the discussions.
The Supply Chain Resilience Initiative (SCRI) is expected to be discussed further during the India-Japan summit in early September.
Joining the initiative would also be in line with Australia’s mission to diversify away from its trade dependence on China, especially at a time when trade links between the two countries are becoming increasingly strained.
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Australia, though, has not formally agreed to the deal and discussions over their inclusion are still ongoing, with Canberra yet to respond to request for comment.