Japan to pay firms to leave China, relocate production elsewhere as part of coronavirus stimulus

SOUTH CHINA MORNING POST:

  • 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.Chinese President Xi Jinping was supposed to be on a state visit to Japan early this month. But what would have been the first visit of its sort in a decade was postponed a month ago amid the spread of the novel coronavirus and no new date has been set.

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