Abstract: As the trend of globalization recedes, the phenomenon of divestment of the Japanese companies has attracted increasing attention. The industrial chain rupture caused by the impact of the epidemic has prompted Japan to maintain the stability of the industrial chain to a strategic level.Promoting the return of manufacturing companies to mainland Japan and achieving diversification of production in Southeast Asia are two important directions for the restructuring of Japanese industrial chain. The Japanese government has introduced an industrial chain adjustment policy and adopted industrial subsidy measures, which has produced practical effects for Japanese companies to transform their industrial chain.In the short term, the supply of Japanese medical and health equipment and key parts supply has been strengthened, and in the long term, the process of diversification and dispersion of Japanese companies industrial chains has been accelerated.The current impact on the stable development of Chinas economy is relatively small, and China-Japan economic and trade relations have withstood the dual challenges of Sino-US trade frictions and the impact of the epidemic, and there has been no large-scale withdrawal of Japanese companies.

Key words: industrial chain, supply chain, epidemic shock, manufacturing industry, direct investment in China