India, Australia and Japan have instructed their officials to implement certain steps such as holding investment promotion events and share best practices as part of the Supply Chain Resilience Initiative (SCRI) of these three countries.
The initiative was discussed during a meeting between India’s Commerce and Industry Minister Piyush Goyal, Australia’s Minister for Trade, Tourism and Investment Dan Tehan and Japan’s Minister for Economy, Trade and Industry Kajiyama Hiroshi.
Highlights of the initiative:
• The SCRI seeks to enhance the resilience of supply chains in the Indo-Pacific region and develop dependable sources of supply and attract investment.
• The ministers instructed their officials to implement certain steps as initial projects of SCRI and further develop the initiative.
The steps include:
• Sharing of best practices on supply chain resilience.
• Holding investment promotion events and buyer-seller matching events to provide opportunities for stakeholders to explore the possibility of diversification of their supply chains.
• The SCRI aims to create a virtuous cycle of enhancing supply chain resilience with a view to eventually attaining strong, sustainable, balanced and inclusive growth in the region.
• The ministers also decided to convene at least once a year to provide guidance to the implementation of the SCRI as well as to consult on ways to develop the initiative.
The initiative riles China
China sharply reacted to the trilateral initiative saying shifting of industrial chains is against economic laws and disrupts global supply chains. China says it would not be conducive to stability and recovery of the world economy.
The SCRI aims to reduce dependence on China amid a likelihood of rechurning of supply chains in the Indo-Pacific region amid the pandemic.
It seeks to build upon the existing bilateral frameworks like the ASEAN-Japan Economic Resilience Action Plan and India-Japan Industrial Competitiveness Partnership and attract foreign direct investment in the region.