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IPFS News Link • Japan

Japan To Spend Billions Relocating Production Out Of China

• https://www.zerohedge.com by Tyler Durden

According to SCMP$2 billion (US) will be set aside for companies shifting production back to Japan, while roughly $223.5 million will be spent on helping companies move production to other countries, according to SCMP.

Under normal circumstances, China is Japan's largest trading partner - however imports from China plummeted nearly 50% in February as the coronavirus pandemic resulted in closed factories and unfilled orders. Meanwhile, a planned visit by Chinese President Xi Jinping to Japan early this month - the first such trip in a decade - was postponed with no date rescheduled.

It remains to be seen how the policy will affect Prime Minister Shinzo Abe's years-long effort to restore relations with China.

"We are doing our best to resume economic development," Foreign Ministry spokesman Zhao Lijian told a briefing Wednesday in Beijing, when asked about the move. "In this process, we hope other countries will act like China and take proper measures to ensure the world economy will be impacted as little as possible and to ensure that supply chains are impacted as little as possible." -SCMP


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