Japanese companies should rely less on China, because of its political and microeconomic risks, and increase production in countries of the Association of South East Asian Nations, the trade ministry said in its annual white paper yesterday.

"We believe there are many risks that may prevent foreign and Japanese firms from keeping their operations [in China]. We want to be whistle-blowers about these risks," said Susumu Okamoto, a deputy director in the trade policy bureau at the Ministry of Economy, Trade and Industry.