Japan to assist companies in leaving China: Coronavirus economic convulsions
Kanako Itamae and Lee Jay Walker
Modern Tokyo Times
The government of Japan under Prime Minister Shinzo Abe is to assist Japanese companies in leaving China. This new policy is part of the ongoing coronavirus (COVID-19) convulsions. Therefore, from the European Union to Japan major economic packages are being enacted.
Recently, the Abe administration espoused a new economic package to stimulate the economy. Thus, over two billion U.S. dollars have been earmarked to assist Japanese companies in leaving China. Of course, this is only a fraction of the entire economic package announced by the Japanese government.
Ironically, Abe had planned to meet President Xi Jinping of China in Japan on a high-level state visit. However, the coronavirus crisis ended this possibility. Therefore, the Abe administration is now focused on shoring up Japan and enacting new economic policies.
Hence, with China being Japan’s biggest partner in trade, the bottlenecks during the coronavirus crisis points in the direction of less exposure. After all, the shortages of components led to extremely negative consequences for many Japanese companies.
In the last two decades, SARS and COVID-19 have both emanated from China. The latest emerging into a full-fledged pandemic that is responsible already for 100,000 deaths. Sadly, the latest coronavirus will continue to kill many more until it is contained and then hopefully, a vaccine will finally be found.
Yet, in the realm of economics, it is a nightmare for countless nations. So naturally, Japan needs to safeguard against the possibility of another virus emanating from China. At the same time, the over-reliance on China about components and other areas is a wake-up call. Therefore, the Abe administration is seeking a broader approach by diversifying manufacturing mechanisms.
Some sectors, including electronics, will not find it easy to wean itself away from China. Despite this, Japan can ill-afford to stand back and not implement new economic policies. Hence, the changed economic policy isn’t aimed directly at China in a malicious way. On the contrary, it is based on Japan’s over-reliance on components in China and other important areas.
It must be stated that Japan under Abe is extremely diplomatic towards China and the Russian Federation. Indeed, even when America put pressure on Japan, it became clear that Abe sought a solution outside the tentacles of America. Therefore, Japan will seek to strengthen other areas with China while overcoming its over-reliance on any single nation.
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