Japanese and U.S. business leaders on Thursday agreed that supply chains for critical products need more diversification among like-minded nations as the coronavirus pandemic exposed vulnerabilities.
After two days of talks, the business councils of both countries said cooperation among allies, as well as between the public and private sectors, is required to build "resilient and trusted" supply chains and mitigate risks to businesses.
The pandemic has laid bare the vulnerabilities of supply chains for a range of products from semiconductors to vaccines against COVID-19. The global chip crunch and shortages of parts due to factory shutdowns in Southeast Asia have clouded the outlook for a sustained economic recovery led by manufacturers.