The discussions were earlier reported by The Economic Times.
The intensifying US-China
conflict and worsening diplomatic relations across the region are forcing companies to consider whether they can continue to do business in China
as before. In addition, the disruptions to trade caused by Covid-19 brought home how dependent many nations were on China
for essential goods such as ventilators or masks, spurring talk about diversification.
is trying to pare its reliance on Chinese factories, with the government subsidizing some companies to shift or expand operations in Japan
and Southeast Asia. So far 87 firms are participating in the program, which will pay out 243.5 billion yen ($2.3 billion).
Both India’s and Australia’s trade and diplomatic relations with China are fraying. Prime Minister Narendra Modi’s government restricted some Chinese imports and banned several Chinese apps after a deadly border clash with its neighbour. In Australia, exports like beef, barley and now wine have been targeted by China amid deteriorating ties between the two nations.
The QuadAlong with the US, Japan, Australia
and India are members of the Quadrilateral Security Dialogue, or Quad, a loose grouping for national security consultation.
Two calls and a text message sent to India’s trade ministry spokesperson during business hours were unanswered.
A spokesman for Australia’s foreign ministry said the nation is working with a range of partners to ensure supply chains are kept open and resilient during the recovery from Covid-19, but did not confirm whether it was working on a deal with Japan and India. There’s no clear agreement between the three nations on any action yet, an official from Japan’s trade ministry said.
Earlier this year Australia
and India agreed to work together on diversifying supply chains.
The new proposal will seek to lean on such bilateral agreements between countries and put in place further measures for trade facilitation and attracting foreign direct investment in the Indo-Pacific region, the people said. Nations from Southeast Asia would also be invited to participate, they said.