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Japan Paying its Corporations to Leave China

April 13, 2020 By Young Research

President Donald J. Trump participates in a trade agreement signing ceremony with Japan Prime Minister Shinzo Abe Wednesday, Sept. 25, 2019, at the InterContinental New York Barclay in New York City. (Official White House Photo by Shealah Craighead)

The Japanese government wants its corporations to diversify their supply chains away from China. The government is offering to pay businesses to do just that. The preferred method is to bring business back to Japan, but the government will even pay some firms to move their Chinese operations into other countries. South China Morning Post reports:

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.

Read more here.

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