NU Online News Service, Dec. 5, 1:53 p.m. EST
After the March 11 earthquake and tsunami in Japan, major companies are beginning to examine risk-management strategies for their supply chains in China, as that country is exposed to many of the same natural-catastrophe risks as Japan and is a larger supply-chain hub for many companies, according to a new FM Global study.
Based on a survey of 100 financial executives from large global North America-based corporations with over $1 billion in sales, FM global found that 86 percent of respondents are reliant on China as part of their supply chain for key product lines compared to Japan. Forty-six percent were reliant on Japan.
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