IMF warns against rush to bring manufacturing home after pandemic

TOKYO — International Monetary Fund representatives on Thursday warned countries and corporations against the impulse to bring manufacturing home in the aftermath of the coronavirus pandemic, but struck an optimistic note about the fate of the financial sector.

Reshoring is “a vicious cycle that will shrink the global supply chain and the international division of labor, which will hamper productivity gains,” Chikahisa Sumi, director of the IMF’s Asia-Pacific regional office, said during a virtual seminar on Thursday.

Sumi suggested it is one thing to strengthen manufacturing of urgent medical supplies, but urged countries not to go beyond that. Japan’s stimulus

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Xi fears Japan-led manufacturing exodus from China

TOKYO — Amid the coronavirus pandemic, Japanese Prime Minister Shinzo Abe has proposed building an economy that is less dependent on one country, China, so that the nation can better avoid supply chain disruptions.

The call touched off a heated debate in the Chinese political world.

In Zhongnanhai, the area in central Beijing where leaders of the Chinese Communist Party and the state government have their offices, “there are now serious concerns over foreign companies withdrawing from China,” a Chinese economic source said. “What has particularly been talked about is the clause in Japan’s emergency economic package that encourages (and

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