Japan’s Prime Minister Shinzo Abe speaks at a press conference on April 7, 2020. Reuters
SCMP: 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
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.
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WNU Editor: This is not going to be enough. China is playing hardball with its customers right now. Threatening them that if they do not sign 3-4-5 year contracts, they will be cut-out of the supply chain effective immediately. Because it takes too long to establish a plant/operation in another country, many firms are being forced to sign these agreements. Talk about having a gun put to your head.
More News On Japan Willing To Pay Its Companies To Leave China Now
Coronavirus Reshapes Global Economy: Japan To Fund Companies To Shift Production Out Of China -- IBTimes
Japan Ditches China In Multi-Billion Dollar Coronavirus Shakeout -- Forbes
Japan allocates billions to pay manufacturing firms to leave China -- Washington Examienr
Coronavirus: Tokyo pays for its businesses to leave China -- Asia News
2 comments:
But what would keep those companies from honoring that contract? Nothing that I can think of, but I'm no expert. Why not sign the contract and simultaneously work to set up operations and source materials in other countries?
Everything is okay. N need to panic. If the Chinese cannot steal from the Japanese, they can steal form the Italians thanks to the dirty communists Renzi and Conte. They would have sold their own mothers to the Chinese if they could have gotten high enough bids.
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