Japan to pay firms to leave China as part of coronavirus stimulus

This should be part of the re-opening strategy – get out of China. Japan is paying companies to relocate production elsewhere as part of their coronavirus stimulus. Brilliant. This should be part of our re-opening strategy – get out of China.tion elsewhere as part of coronavirus stimulus.
 

Japan to pay firms to leave China, relocate production elsewhere as part of coronavirus stimulus

  • More than US$2 billion of the country’s record economic stimulus package will be used to help companies move production away from China.
  • The move coincides with what should have been a celebration of friendlier ties between the two countries, before the pandemic struck
By: Bloomberg, 9 Apr, 2020
Japan has earmarked US$2.2 billion of its record economic stimulus package to help its manufacturers shift production out of China as the coronavirus disrupts supply chains between the major trading partners.

The extra budget, compiled to try to offset the devastating effects of the pandemic, includes 220 billion yen (US$2 billion) for companies shifting production back to Japan and 23.5 billion yen for those seeking to move production to other countries, according to details of the plan posted online. The move coincides with what should have been a celebration of friendlier ties between the two countries. Chinese President Xi Jinping

was supposed to be on a state visit to Japan early this month. But what would have been the first visit of its sort in a decade was postponed a month ago amid the spread of the virus and no new date has been set.

China is Japan’s biggest trading partner under normal circumstances, but imports from China slumped by almost half in February as the disease closed factories, in turn starving Japanese manufacturers of necessary components.

That has renewed talk of Japanese firms reducing their reliance on China as a manufacturing base. The government’s panel on future investment last month discussed the need for manufacturing of high-added value products to be shifted back to Japan, and for production of other goods to be diversified across Southeast Asia.

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  Geller Report 
Japan to pay firms to leave China as part of coronavirus stimulus Japan to pay firms to leave China as part of coronavirus stimulus Reviewed by PostDiscus on April 10, 2020 Rating: 5

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