Japan Govt, Firms Concerned about Supply Chain Damage from New Virus

Politics Economy

Tokyo, Jan. 24 (Jiji Press)--In the wake of the spread of pneumonia caused by a new strain of coronavirus after an outbreak in Wuhan, China, the Japanese government and companies operating in the city are strengthening their vigilance.

A prolonged outbreak is likely to deal a blow to the supply chains of Japanese firms such as automakers and electronic equipment makers.

"We'll closely watch the disease's economic impacts with high interest," Japanese industry minister Hiroshi Kajiyama told a press conference on Friday.

Wuhan is a core of supply chains in Asia, bringing together cutting-edge factories that make semiconductors and other high-tech components.

Some 160 Japanese companies operate in the city, including Honda Motor Co. <7267>, Nissan Motor Co. <7201>, Denso Corp. <6902> and Daikin Industries Ltd. <6367>.

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