TOKYO: A Japanese government annual report on Tuesday highlighted the need for constructing reliable supply chains with like-minded countries in a bid to better prepare for geopolitical risks related to China and its economic coercion.

The 2023 White Paper on International Economy and Trade also underlined the importance of strengthening cooperation with so-called Global South emerging and developing countries.

The global economy is facing a risk of division due to its deceleration and a rise of nations stepping up hegemonic moves, the report said.

Citing a private-sector survey, the paper said Japanese companies operating abroad are strongly aware of economic security risks related to China.

While the number of companies weighing China as their investment destination is decreasing, that of firms targeting Association of Southeast Asian Nations member states and India is on the rise, the report said.

JIJI Press