Gov't maps out steps to enable smaller firms to transfer costs

Politics Economy

The Japanese government on Monday unveiled a package of steps aimed at enabling small and midsize companies to pass on costs from higher raw material prices and pay hikes properly to bigger firms, as Prime Minister Fumio Kishida pushes for wage growth. The government aims to strengthen monitoring to prevent big firms from taking advantage of their relative superiority and setting unfairly low prices when they do business with subcontractors. Such a practice, which goes against the country's law, often squeezes profitability at small and midsize companies. Kishida sees wage growth as an integra...

Kyodo News

Kyodo News