COVER STORY • 1

White Paper on
International Economy &Trade 2021 – Summary

By Policy Planning & Research Office, Trade Policy Bureau, Ministry of Economy Trade & Industry (METI)

Introduction
The White Paper presents the four international trends that shouldbe the basis of trade policy in the age of living with the novel
coronavirus: (1) the expanded role of government in the economy, (2)national efforts to enhance economic security, (3) the growinginterest in the environment, human rights, and other common values
in international economic activities, and (4) business digitalization. It
explains the need to update the free trade system to enable it to deal
with issues such as the expanded role of government in the economy
as part of the process in the recovery of the global economy from theCovid-19 crisis; the growing interest in the environment, humanrights, and other common values and other momentous changes inprogress; continuous trade restrictions to prioritize the home country;
and the damage to the conditions for fair competition caused bymarket-distorting measures. This analysis is the basis of the call for
utilizing digital technology to build resilient supply chains and tosecure new market opportunities to achieve sustainable growth in
Asia as broad directions going forward. The White Paper also takes
note of the importance of undertaking the development of new
international rules and norms to support the free trade system and forthe private and public sectors to work together to develop a value
chain that plays to Japanese strengths.

Part I, Chapter 1. Economic Situation Surrounding
Japan & Trends That Will Shape Trade
Part I, Chapter 1 explores changes in the economic circumstances
since the publication of the White Paper on International Economy
and Trade 2020, which focused on the impact of the Covid-19 crisis,and presents the four major international trends that should be thebasis of Japan’s trade policy and are the perspectives for the analysis
in this White Paper.
For now, countries around the world must manage their economies
while performing the difficult balancing act between containing novel
coronavirus transmission and resuming economic activities. Future
recovery, moreover, will not only depend on the effectiveness of
vaccines and the level of their acceptance but will also be affectedsignificantly by hard-to-predict factors such as the emergence of newvariants and their infectiveness. As this state of living with the novel
coronavirus becomes the norm, tectonic movements in the
4 Japan SPOTLIGHT • September / October 2021

geopolitical environment are accelerating with the policy shift in the
United States, inauguring a new stage in the political environment
surrounding Japan.
The following is an analysis of the four major international trends
that should be the basis of trade policy and business activities inJapan going forward, given the uncertain outlook for the global
economy and the new international political environment.
The first trend is the expanded role of government in theeconomy.
As the impact of the Covid-19 crisis drags on, countries are taking
active economic measures with a focus on industry and households,
areas of concentrated economic damage from the pandemic, on ascale that exceeds the response to the global financial crisis. It is also
notable that the measures taken by governments do not stop at
providing relief but offer support for digitalizing society, creating agreen society, and otherwise transitioning and adapting to a postCovid-19 economic structure.
These major moves by governments can also be viewed as asearch for ways to qualitatively strengthen the role of governments.
They emphasize the role of governments such as actively engaging ina rapid transition to a digital society in order to effectively handle theCovid-19 crisis and making the future more foreseeable forcompanies through clear policies and support measures in order toencourage private investment aimed at achieving carbon neutrality.
The second trend consists of the national efforts to enhance
economic security.
In recent years, with the struggle for technological hegemony
between the US and China as the backdrop, these and other majorcountries have stepped up their efforts to enhance their economic
security, with a growing impact on companies’ business activities. It
is against this background that the Covid-19 pandemic exposed thevulnerability of supply chains. In response, those countries areworking to make supply chains more resilient and otherwise enhancetheir economic security. Here, it is important to take note of thegrowing trend toward exploring cooperation among like-mindedcountries to undertake the development and management ofadvanced technology and to work to enhance the resilience of supply
chains.
As for companies, it is becoming increasingly important to develop
https://www.jef.or.jp/journal/

business strategies that reflect a strong awareness of the diplomatic
positions and economic security policy of each country.
The third trend is the growing interest in common values ininternational economic activities.
The new millennium has seen progress in international efforts tosecure human rights, the environment, and other common values,
prominent examples being the United Nations’ Guiding Principles for
Business and Human Rights, Sustainable Development Goals (SDGs),
and the COP21 Paris Agreement on climate change. With the US
rejoining the Paris Agreement and starting to cooperate with Europe
following its change of administration in January 2021, efforts tostrengthen international cooperation based on common values areintensifying. To give one example, more and more companies are
setting goals to reduce greenhouse gas emissions (science-basedtargets, SBT) that are consistent with the levels required by the Paris
Agreement. The ongoing legislative efforts in the US and Europe onhuman rights due diligence legislation that will require
accommodation by companies outside those regions is anotherexample.
This international trend of seeking to secure common values
through companies’ business activities takes a comprehensive viewof the activities of companies engaged in transactions and requires
them to be equally responsible for human rights and the environment.
While there is a growing risk that constraints will be imposed on
business activities that are incompatible with internationally sharedvalues, contributing to solving social issues with more awarenessthan ever of these common values could present companies with new
business opportunities.
The fourth trend is the growing interest in business digitalization.
The Covid-19 pandemic has accelerated digitalization as the need tosimultaneously prevent transmission and conduct economic activities
expanded the use of digital technology in a wide range ofcircumstances. In business activities, for example, workstyles arechanging as remote technology is incorporated, and e-commerce isexpanding. Digitalization is permeating the daily life of the individual,
and a wide range of technologies such as contact-confirmation
applications are being introduced to deal with Covid-19. To be sure,digitalization has been on the march since the turn of the millennium.
This is evident in the global flow of funds: while payments forintangible assets such as royalties and licensing fees have grownsignificantly, the flow of direct investment has only increased
moderately. This shows that the dominant business model forinternational business has become one in which companies use
alliances to secure a return on their intellectual assets without having
to invest capital. That said, the Japanese business model is one wherecompanies secure a return on their intellectual assets while
maintaining strong relationships through capital ties, since bothroyalties and other payments and investment flows are showing
similar growth.
In order to continue to enjoy the benefits of international trade in
the world of living with the novel coronavirus, it is essential toconstruct business models and social infrastructures that are adapted
to digital technology. It is also important to change how companies’
bases are located and change the international division of labor.
Developing international rules that ensure both trustworthiness inprivacy protection and data security and the smooth flow of data isalso an urgent task.

Part II, Chapter 1. Toward Building Resilient Supply
ChainsThis chapter revisits the development of the Asian supply chains ofJapanese companies against the background of the trends examined
in Part I and explores resilient supply-chain management and relevant
policy efforts that take into account the growing interest in common
values for economic activities.

Section 1. Asia-wide changes in supply chains
Looking back at the global development of the Japanesemanufacturing sector since the turn of the millennium, Japanesecompanies accelerated their overseas expansion led by corporate
clusters, most prominently in the automobile industry. China’s
accession to the WTO ignited its rapid expansion as a destination for
production bases and trade, but this was matched by a simultaneous
rise in investment in North America, Europe, and ASEAN. Direct
investment balances broadly show a regionally balanced investment
profile.
For Japanese companies, China was a part of “triangular trade”
where basic materials, parts, and components are exported andassembled as final products to be reexported. Today, “local
production for local consumption”, where the products are sold in
China, as well as the export of intermediate goods, make up asignificant part of the production.
Last year’s White Paper revealed the growing concentration ofimport sources in Japan’s supply chains in recent years. On the other
hand, the medium-term trend is that Japanese companies’ drive to set
up locations in China peaked in 2012 and is now declining, both interms of the number of companies being established and China’s
share of the direct investment balance. From a macro perspective,
production bases in Asia are gradually becoming more diversified. As
a result, the shares of imports from China for some major machineparts and components have plateaued while the shares of imports
from Thailand, Vietnam, Indonesia, etc. have increased. The
widespread adoption of the “China+1” model by Japanese companies
may also be contributing to this. Under this model, new production
bases are selected by taking into consideration the overall cost andthe stability of the business environment (Chart 1).

Section 2. Supply chain risks and recovery from crises
Disasters have seriously impacted supply chains in the past.
Companies assess the risks from various perspectives including theirpredictability and frequency, ease of control and management, andthe scale of impact, and make plans accordingly. Corporate responses
to questionnaire surveys taken after natural disasters often “consider
Japan SPOTLIGHT • September / October 2021

5

CHART 1

The number of Japan’s manufacturing affiliates bycountry (US, China & Thailand)(thousandcompanies)(thousandcompanies)

125

Global Financial
Crisis (2008)

10

4

World total(left axis)

8

3

China

6
4

2

US

1

2

Thailand

Total (left axis)

China

Thailand

2018

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

2005

2004

2003

2002

0
2001

0

US

Source: METI, “Basic Survey on Overseas Business Activities”

distribution of production bases”. This also figured prominently in the
response to the Covid-19 crisis.
That said, many events that occurred before the Covid-19 crisis
also disrupted supply chains, but they did not necessarily result in the
reorganization of production bases. For example, no significant
change was observed in the location of Japanese affiliates in Thailand
after the 2011 floods there.
As for changes to their supply chains being considered, while thefact that the current business environment is increasingly uncertain
and many companies face a downturn in their business outlook
should be taken into consideration, distributing and diversifying

sources is the most frequent response, followed by strengthening
mutual assistance networks with other companies, etc.
The disruption of supply chains caused by the Covid-19 crisis has
once again made clear the need to go beyond direct suppliers andtake into account the entire, multi-level supply chain. There is also thepossibility that unforeseen risks will disrupt supply chains in the
future. In fact, some assessments report that preexisting business
continuity plans (BCP) did not work. There is increasing awareness of
the importance of formulating BCPs and managing supply chains inways that address a wide variety of risks that go beyond transient
disasters (Charts 2 & 3).

CHART 2

CHART 3

Supply chain improvement measures(including those under consideration)
Relocation of overseas bases to Japan(reshoring)

Effects of BCPs on Covid-19 shock
Total
27.6%

5

More decentralization and diversificationof overseas bases

13

Shift from overseas suppliers todomestic suppliers

16.7

14

More decentralizing and diversifying
overseas suppliers

44.5

23.3

4.3 7.9 3.3

33

Decentralization and diversification of
R&D, marketing and other functions

15

Standardization and normalizationof products and parts

27

Strengthen mutual cooperative
relationship with other companies

28
16

Other

0

5

10 15 20 25 30 35(% of companies with valid responses)
Source: Development Bank of Japan, Inc. (2020)

6 Japan SPOTLIGHT • September / October 2021

0%

20%

40%

60%

80%

Worked effectively
Worked a little
Did not work very well
Did not work at all
Did not take action in accordance with the BCP
Don't know
Source: Mizuho Information & Research Institute, Inc. (Current: Mizuho Research &Technologies, Ltd.) (2020)100%

international trend as the basis of more sustainable and inclusive
economic growth while minimizing the risk from delays in response.

Section 3. Additional considerations in supply chain
management
In addition to the diversification of risks explained so far, matters to
be considered in managing supply chains are becoming more
complex and sophisticated against the international background ofgrowing calls for economic security and interest in common values.
With many countries around the world likely to advance theirefforts toward net-zero greenhouse gas emissions, it is expected that
there will be ever more efforts by companies to manage not only theirown CO2 emissions but also those from their overall supply chains
including suppliers. Europe is taking the lead in the growing efforts tomake it compulsory for companies to identify, assess, and disclose
the human rights violation risks of their own and their suppliers.
Japanese companies operating in Europe and elsewhere are alreadytaking steps to comply with these initiatives. More and morecompanies will be subject to such mandates or will be required toundertake due diligence through their transaction partners.
In addition, given the need for some goods and sectors to comply
with the relevant countries’ export and procurement regulations
established for economic security purposes, companies are evermore
required to have a detailed understanding of the circumstances
surrounding their supply chains and take measures accordingly.
The first step for companies in dealing with this situation is tounderstand their supply chains beyond primary suppliers. They mustalso recognize that the environment, human rights, and othercommon values are now part of the competitive environment andintensify their efforts in accordance not only with the law but also tomeet the expectations of their stakeholders.

Section 1. Growing expectations regarding corporate behavior
toward a sustainable and inclusive society of the futureThis chapter takes up the growing international interest in common
values explained in Part I and explores ways to incorporate thisSince the 1990s, with the rise in the international demand to deal
with environmental challenges, social inequality, and other aspects ofthe dark side of globalization, there has been a gradual but steady risein the willingness of companies, given their significant impact onsocial and economic activities, to contribute to the resolution of thesocial issues facing the international community. The UN Guiding
Principles for Business and Human Rights issued in 2011 and theSDGs adopted by the UN in 2015 are part of this trend.
The interest in common values has swelled of late into aninternational tidal wave. Here are three of the most prominent
examples.
First, the efforts by companies to tackle social issues have become
an important perspective for the financial markets in evaluating themas the result of financial institutions and institutional investors
incorporating Environment, Social and Governance (ESG) factors intheir investment and lending and asset management. Most recently,
there has been a move toward incorporating longer-term risks andopportunities in assessing corporate value; the Task Force on Climaterelated Financial Disclosures (TCFD) is a public-private joint initiative
to that end. Given the expansion of the scope of information disclosure
required by capital markets and overseas regulatory authorities, it isalso important for companies to view the growing demand for
information disclosure not only as a matter of “accountability” to themarket but also as an opportunity to transform corporate management(Charts 4 & 5).
Second, interest in how social issues are addressed is growing inways that affect companies’ competitive environment. In conducting
ESG investment, for example, there are cases where statements of theraison d'être of the companies are evaluated or investment strategies

CHART 4

CHART 5

Part II, Chapter 2. New Model for Growth That
Incorporates Common Values

Climate change opportunities are
increasingly embraced among CEOs
(%)

2010

50

2020

(%)

45

60

40

2016

50

35
30

2018

40

25
20

30

15

20

10
5

Source: PwC’s 23rd Annual Global CEO Survey

US

India

CanadaUK

Germany

Japan

Italy

BrazilFranceChina

10Global0

Proportion of sustainable investing
relative to total managed assets(2016 → 2018)

0EuropeUS

Japan

Source: 2018 Global Sustainable Investment Review

Japan SPOTLIGHT • September / October 2021

7

are adopted that incorporate the “impact" of the business activities asexternalities. The more people empathize with the globally sharedvalues of SDGs and sustainability, the larger the markets those values
create will be. Given that younger generations are clearly showing atendency to attach importance to these “common values” not just inJapan but also globally, it is essential for companies to positioncommon values in their business management appropriately in gaining
market opportunities and acquiring human resources in the labormarket in order to secure a competitive advantage (Charts 6 & 7).
Third, efforts by governments in Europe and the US to build
institutional frameworks for incorporating values across the entire
supply chain as part of foreign economic policy are becoming more
pronounced. European countries and the US regard human rights anddemocracy and other basic values as elements of their foreign
economic policy. More and more, they are imposing the abovementioned human rights due diligence and related disclosure
obligations as well as unilateral sanctions on companies establishedoutside their jurisdiction.
Japanese companies must accommodate the policy measures
being taken by European countries to incorporate “respect for humanrights” into “foreign economic policy”. How have Japanesecompanies handled this? Adopted in 2015, SDGs in particular have
had a large impact on corporate management in Japan. SDGs are
increasingly recognized, and more than 30% of the big businesses
responding to a questionnaire survey in 2020 answered that they had
incorporated SDGs in their management policies and business
operations.
At the same time, there is insufficient awareness of the shift in therisks and opportunities for companies caused by the growing focus
on common values and not enough investment in intangible assets
based on the changes in the competitive environment. As theinfluence of the future-oriented values of sustainability grows, it ismore necessary than ever to identify and invest in intangible assetsthat contribute to sustainability. In addition, it is also important to give

CHART 6

Part II, Chapter 3. Taking Measures Toward Buildinga “Trustworthy” Global Value Chain
What should trade policy be like in the world of living with the novel
coronavirus – a world where the role of governments is expanding,dealing with economic security is the norm, and governments andcompanies alike work to contribute to common values? The following
sections present broad directions for this (Chart 8).

1. Momentous changes in progress all over the world
The variables to be considered in managing global value chainssuch as economic security and how to address the growing interest in
the environment, human rights, and other common values, areincreasing in number and complexity as a consequence of the four
trends explained in Part I. Establishing value chains using digitaltechnology and data to respond to this growing complexity has
become a major strategic issue in corporate management andpolicymaking.
In addition, there is a growing need to upgrade free trade in orderto sustain and enhance the liberal and open socio-economic system.
In other words, the challenge is not only to create a business andinvestment environment that supports the free movement of goods
and multi-tiered supply chains that transcend national borders but toalso develop norms aimed at achieving sustainability, fairness, andsocial justice.

2. Action toward strengthening economic security andindustrial competitivenessIn order to ensure Japan’s economic security, it is important to
reduce the level of concentration of suppliers for important materials

CHART 7

Market opportunities in 2030

SDGs bond issuance (world)(100 million $)Health and Well-being: healthcare services and products,
remote medical care

Emergency and Materials: expansion of regenerated energy, bio-basedmaterial applied to circular economy

Cities: electrified vehicles, CO2 capture, affordable home ownership

Food and Agriculture: reduction of food loss, services for healthy dietMarket size of Four economic systems in 2030
Developing Economies

accurate “expression” to how companies contribute to increasing
corporate value in order to be recognized appropriately by the capital
market.

Developed Economies

6,000
5,000
4,000
3,000

Cities2,000

Energy and Materials
Health and Well-Being

1,000

Food and Agriculture
0

1

2

3

4
(trillion $)Source: Better Business Better World 2017 (Report for the World Economic Forum 2017)

8 Japan SPOTLIGHT • September / October 2021

0

2015

2019

2020

Source: Financial Services Agency of Japan, Japan Securities Dealers, Environmental Finance

CHART 8

New challenges for upgrading the value chain
New Challenges
Strengthening the“promotion”
and “protection” in lightof economic security

Avoid concentrationof production sites
Preparing for Natural
Disasters (BCP)

Traditional issues

s

Re

e

nc

e
ili

Growing concern forenvironmental
protection/climate change

Growing expectations forhuman rights considerations(due diligence on human rights, etc.)

Green

Human rights

Examining and visualizing the entire value chain

DigitalUtilization of digitaltechnology and data
Establishing a “trustworthy” value chain
Source: METI

and products with heavily concentrated overseas production bases
and to build global supply chains focused on “trustworthiness” with
the US and other like-minded countries through such means as
supporting the diversification of production bases and forming
strategic alliances with overseas companies.
It will also be important to work on controlling sensitivetechnologies and to encourage research and development and capital
expenditures on “chokepoint” technologies including throughcollaboration with like-minded countries. Through these efforts,
Japan will develop important domestic production bases throughappropriate role-sharing with like-minded countries, establish an
important position in the cutting-edge technology development
community, and “overcome vulnerability” and “secure superiority” intechnologies and goods important to economic security.

3. Challenges and initiatives in the digital field
Japan will take the lead to prevent the expansion of digitalprotectionism, which can hamper corporate business opportunities,
and achieve “Data Free Flow with Trust” (DFFT), the development ofinternational rules that ensure both free flow of data and trustworthy
privacy protection, security, etc., thereby contributing to the creationof new value that data will bring about and to economic development.
“Trustworthiness” in transactions regarding data protection andother aspects will also be an important factor in decision making. It isnecessary to work with lending countries in order to visualize“trustworthiness” as a common factor for evaluation.

4. Addressing common values (environment, human rights,
etc.)
Based on the “Green Growth Strategy through Achieving Carbon
Neutrality in 2050”, it is important to take the lead in the strategiccompetition surrounding green growth to work with the US andEurope to substantiate cooperation, make progress in international
rule-making, and steadily implement industrial policies at home andabroad. In Asia, where energy demand is expected to grow, it isessential to employ various forms of pragmatic energy transitions
utilizing all energy sources and technologies. Aiming tosimultaneously achieve both sustainable economic growth andcarbon neutrality, Japan has initiated the Asia Energy Transition
Initiative (AETI), and will work with ASEAN member countries.
Another challenge in global corporate management is the urgent
need to adapt to the international trend of incorporating respect forhuman rights and other social issues in management strategy. It is
important to improve Japanese companies’ understanding of“business and human rights” through such means as raisingawareness of the “National Action Plan” formulated last October andto foster an environment in which corporate value is enhanced bystrengthening such measures.

5. Upgrading the free trade system
To further enhance the global value chains that build on thestrengths of Japanese companies, it is necessary to form an
economic order that addresses the current challenges and to have astrategic partnership between the public and the private sectors.
Specifically, the issues are as follows: the danger of me-first andprotectionist trade restrictions such as export restrictions on
vaccines, etc. and tariff hikes to protect domestic industries becoming
the norm; the damage to the level playing field caused by marketdistorting measures by foreign governments, businesses, and otheractors; and the inadequacy of international rules for an increasingly
digitalized economy. This makes it important to take a multi-layered
approach that includes not only hard law, such as the WTO laws andEconomic Partnership Agreements (EPAs), but also soft law, such as
the norms being developed around the OECD and APEC (e.g. data
Japan SPOTLIGHT • September / October 2021

9

CHART 9

Creating an economic order that supports the “upgrading” of
the free trade system and creating a value chain thatleverages Japan’s strengths＜Issues to be resolved＞
Risk of “my country first” and protectionist trade
restrictions becoming widespread＜Actions＞
Creating Economic Order• Restrictions on exports of vaccines, etc.
• Increase in tariffs to protect domestic industry• Remaining tariff/non-tariff measures that hinder the broaduse of environmental goods(1) Rule-making and utilization in
WTO

Damage to the level playing field(2) Bilateral/regional rule-making
and utilization in EPA

by market-distorting measures taken by foreign
governments and companies• Industrial subsidies and state-owned enterprises that ad
to overproduction• Forced technology transfer, dumping by foreign companies• Failure to take effective climate change measures

Underdeveloped international rules

to cope with the digitalization of economic activities• Strengthen disciplines against nations that seek toenclose data
• Reduce inequalities between digital companies andtraditional companies(3) Creating norms in fora such as
OECD and APEC
Strategic collaborationin the public and private sectors(4) Creating a value chain thatleverages Japan’s strengths in
the public and private sectors

Source: METI

governance), as well as public-private efforts to enhance the value
chains that leverage Japan’s strengths (e.g. the Supply Chain
Resilience Initiative (SCRI), cooperation with the US and Europe)(Chart 9).
In the WTO, Japan will actively participate and show leadership intalks among like-minded countries in new areas such as e-commerce,
trade and health, trade and environment, and other new areas fornegotiation, and strengthen efforts in cooperation among like-mindedcountries, such as the Trilateral Meeting of the Trade Ministers ofJapan, the EU and the US to deal with market-distorting practices andachieve a level playing field. It will also promote efforts to improve thedispute settlement function, including the reactivation of the Appellate
Body.
The task lying ahead for Japan on EPAs is to effectively implement
the free and fair trade and investment rules for the 21st century
established by the CPTPP, the Japan-EU EPA, the Japan-UK EPA andother agreements in the Asia-Pacific region and to extend their reachbeyond. Japan will also take the lead in efforts aimed at the early
entry into force of the RCEP Agreement and the reincorporation ofIndia therein.
The OECD is holding talks on principles for government access topersonal data and on the revision of rules regarding international
taxation in the digital economy. APEC is taking stock of issues
concerning the cross-border transfer of personal information,
reviewing and expanding the list of environmental goods, andidentifying the scope of environmental services. Japan will actively
promote these rule-making efforts in the OECD, APEC, and elsewhere.
In addition to these efforts to establish rules and norms, the public
and private sectors must work together on efforts around value
chains that play to Japan’s strengths. The dramatic economic and
10 Japan SPOTLIGHT • September / October 2021

social shifts including the need to resolve social issues in Asian anddeveloping countries must be taken into account when promoting
infrastructure development and collaboration between Japanese andlocal companies in emerging markets and elsewhere. In the ASEAN
region in particular, it is necessary to explore an alliance-based
approach to business expansion in a departure from the projectbased “vertical integration” business expansion model that hasdeveloped around the intra-region supply chains, mainly in theautomobile sector.
On the policy front, the Japanese government is working toenhance the resilience of the Japanese and ASEAN economies byadopting the “ASEAN-Japan Economic Resilience Action Plan”,
launching the “Dialogue for Innovative and Sustainable Growth(DISG)”, holding the “ASEAN-Japan Business Week” and providing
support for ASEAN’s diverse and realistic energy transition. It will alsoutilize the “Supply Chain Resilience Initiative (SCRI)” agreed to at theAustralia-India-Japan Economic Ministers’ Meeting held on April 27,
2021, and the “Supply Chain Resilience Forum”, an Australia-IndiaJapan-ASEAN public-private undertaking, and other venues to createa virtuous circle of enhanced supply-chain resilience and industrial
competitivity on an Indo-Pacific scale with the aim of achieving
sustainable economic development in the region. Furthermore, it will
work to effectively connect India, the world’s second-most populous
nation and key source of IT talent, and ASEAN, where Japanesecompanies have established sophisticated manufacturing supply
chains, to construct overarching regional supply chains – a transition
from “China+1” to “India Inclusion.”