Japan's manufacturers have started moving production out of China because they fear the deadly coronavirus outbreak could prolong plant closures and wreak more havoc on their supply chains.
Reallocating production outside of China means a temporary surge in costs and is not an easy decision to make, but some companies cannot afford to wait until the health crisis is contained, analysts said.
Japanese companies have extensive manufacturing operations in China, though increased labor costs and the trade war between Beijing and Washington have prompted some of them to shift production from the world's second-largest economy to Vietnam or elsewhere in Southeast Asia.