According to the reports of Baaghi TV, in an effort to reduce its reliance on manufacturing in China, the Japanese government will start subsidizing some companies to invest in factories in Southeast Asia.
Sixty-five companies, including the private face mask maker Iris Ohima Inc. or Sharp Corporation, will receive a total of 57.4 billion yen, which is 6,536 million, in government subsidies for investment in production in Japan. This was announced by the Ministry of Economy, Trade and Industry of Japan
Another 30 firms will receive funding to invest in Vietnam, Myanmar, Thailand and other Southeast Asian countries, according to a ministry announcement. It does not provide details about the amount of money.
Although it is not explicitly stated that this amount is to transfer production from China. Japanese Prime Minister Shinzo Abe said in March that Japan needed to repatriate production or diversify production in Asian countries and reduce its dependence on other countries, including China.
According to the British News Agency, the Japanese government will pay a total of 70 billion during this period. The payment is 243.5 billion set by the government in April to reduce dependence on Chinese supply companies, with the aim of helping companies move factories to their home country or elsewhere.
Japan’s decision is similar to Taiwan’s 2019 policy, which aims to repatriate investment from China. So far, no other country has implemented a concrete policy to encourage this change.
Under normal circumstances, China is Japan’s largest trading partner and Japanese companies have invested heavily there. The outbreak of the corona virus has damaged their economic ties and damaged China’s image in Japan.
The government of Japanese Prime Minister Shinzo Abe has been working to improve relations with China since the 2012 riots in Japan. But the epidemic and the ongoing territorial dispute over islands and gas fields in eastern China have thwarted those efforts.
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