Editorial

15:22 JST, February 13, 2025

If small and midsize enterprises are unable to properly pass on increased costs through their prices, wage increases will not spread. It is important to break away from deflationary business practices by revising the subcontract law and move toward the growth of the Japanese economy.

An expert panel of the Japan Fair Trade Commission and the Economy, Trade and Industry Ministry has compiled a report on the revision of the law. Based on this report, the government intends to submit a bill to the current Diet session to revise the law. This will reportedly be the first drastic revision of the law in about 20 years.

The law was enacted in 1956 during a period of rapid economic growth to protect small and midsize businesses. However, there are many industries in which multiple layers of subcontractors connected in a pyramid formation is the norm. Regulations should be........

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