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‘Pack up and get out of there,’ Japan to spend $2.2 billion to get Japanese companies to exit China

Abhinav Singh by Abhinav Singh
9 April 2020
in Opinions
Xi Jinping, coronavirus, Shinzo Abe, china, Japan, coornavirus, COVID-19, Wuhan Virus
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The first of the many avalanches has begun for China. The Shinzo Abe government of Japan has approved a  stimulus package worth whopping 108.2 trillion yen (US$993 billion) – equal to 20 percent of Japan’s economic output – to cushion the impact of the epidemic on the world’s third-largest economy. Out of the total amount, it has earmarked US $2.2 billion to help its manufacturers shift production out of China.

220 billion yen ($2 billion) is pledged for Japanese companies shifting production back to Japan and the remaining 23.5 billion yen for those seeking to move production to other countries. The disruption in supply chains amidst the growing scare of the Wuhan virus and the damages incurred when the Coronavirus epidemic was at its peak in China has led Japan to take this radical step. China will lose a large number of jobs as a result of this move.

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China is Japan’s biggest trading partner under normal circumstances, but imports from China slumped by almost half in February as the disease closed factories, in turn starving Japanese manufacturers of necessary components. To be precise, China exports $148 billion worth of goods to Japan and despite having such big numbers stacked against it, the Japanese are not taking the foot off the pedal and attacking China much like the rest of the world.

Japan’s fury towards China is understandable because of the postponement of the Tokyo Olympics. The country was keen on ensuring that the quadrennial multi-sports event goes on as planned but China and its irresponsible handling of the deadly virus caused a full-blown pandemic which in turn crippled the entire planet.

The Japanese Deputy PM Taro Aso has even gone on to say that the World Health Organisation might have to change its name to “Chinese Health Organisation”, during a speech in Japanese Parliament wherein he lent support to a petition terming Tedros Adhanom Ghebreyesus unfit for the role of the WHO chief.

Historically, Japan does not share a pleasant relationship with Beijing. The territorial disputes and World War II embittered grievances have marred the Japan-China relationship for decades. The relations between the two nations are so sour that it can be gauged from the fact that a restaurant owner in China put up a banner that read “Congratulations to the United States for the outbreak of Coronavirus and wish the pandemic lasts forever in Japan”. 

While in the recent past, the shadow of US-Japan ties has defined how Japan approaches China, Shinzo Abe already found himself in a spot of bother as far as his attempts to rebuild ties with China are concerned. With the Trump administration entering into a trade war with Beijing, Abe found it hard to continue with his balancing act.

Although Xi Jinping and Shinzo Abe were scheduled to meet this month when the former was to visit Japan for a state visit, which would have a first of its sort in a decade. But since the visit had to be canceled courtesy the virus, it looks like things are only going downhill from here if Japan’s pulling the plug is any indication.

https://twitter.com/Iyervval/status/1244314315588435969

While Japan has put the foot down and ordered its companies to pack their bags from China and hunt for new places to set their camp. India and many South-east nations like Vietnam and Bangladesh are eyeing this lucrative opportunity to lure Japan to their shores. India looks like the best bet for Japan given the cheap labour and a robust manufacturing ecosystem of which Japan already is a part.

Both the countries have had close civilizational ties for 1,400 years. There are 1,441 Japanese companies registered in India, up from 1,369 in 2017. These companies have 5,102 business establishments spread across states like Karnataka, Tamil Nadu, West Bengal, and Gujarat. The southern Indian state of Karnataka alone has around 530 Japanese companies working in it, up from around 200 five years ago.

‘We see a recession coming,’ Japan is the first country to do a grand retreat from China but it won’t be the last

Also, Japan has been a strong admirer and supporter of Prime Minister Narendra Modi’s Make in India, Skill India, and Clean India Mission initiatives. Therefore it makes sense for Japan to drop the anchor here in India.

Japan has given a rap on the knuckle to China and its high time the other countries follow the suit and make China pay for what it has done.

 

Tags: ChinacoornavirusCOVID-19JapanShinzo AbeWuhan VirusXi Jinping
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Comments 16

  1. markhor says:
    5 years ago

    Haha the only thing the Indians are best in is making stories instead of BLETHRING here why don’t you go and get your 80000. Miles of land that the Chinese have swallowed and Not even mentioned anything about it 🙄

    Reply
    • David says:
      4 years ago

      Talk sense mate ,What you’re talking about is totally not related to this article and what you are asking for is mentioned in many other articles.So stop whining like a dog and do something useful for the community.

  2. Mohan says:
    5 years ago

    Chinese are like leeches and they will suck your blood and kill you finally.

    Reply
    • Telford Lee says:
      4 years ago

      U’re saying Indians are like leeches and they will suck your blood and kill you finally. Is that it? I mean why not!

    • Joseph says:
      4 years ago

      Damn you Chinese guys are sure salty.

  3. Jack says:
    4 years ago

    Use that salt straight back at the Chinese 100X because we all know how leeches react to salt ;o)

    Reply
  4. muzambian says:
    4 years ago

    I did not understand Indians hate Chines so much or you hate each other so much.
    Divide and rule. USA rules the World.

    Reply
    • mike says:
      4 years ago

      India hates China because so many of there people are dead because of COVID19 and CHINA made it on purpose, sent it all over the world.

  5. Samuel says:
    4 years ago

    China is a fility evil country
    Boycott it and fight

    Reply
  6. Divya vethakkan says:
    4 years ago

    I admire japan,

    Reply
  7. Jagan N Kaushik says:
    4 years ago

    Japan has taken the right decision to call back Japanese Industries, from China!
    China can never be trusted & works like a Robot, guided by it’s philosophy of Communism!
    It is but natural that Japan wouldn’t stay in China, after former US President Mr. Donald Trump called China a thief & blamed it for having stolen US Technology & Trade Secrets, which caused great losses to US Industries!
    Japan & even US would find India as a profitable destination, both conducice & congenial, to set up their Industries here, while PM Mr. Narendra Bhai Modi is at the helm of Govt Affairs!
    – J. N. Kaushik, Advocate, New Delhi –

    Reply
  8. Noah Of-stuff says:
    4 years ago

    China needs our help, not hate. A world symposium of ideas is needed to bring China closer to the rest of the world. My idea, which is also the best idea, is to uproot and dispose of (in an industrial incinerator) the CCP. Let us all be done of them once and for all.

    Reply
  9. Gopi says:
    3 years ago

    There is one way to put china in trouble economically. There are millions of small and cottage industries in china that make hundreds of household low value goods (of low quality too) from dustbins to toys to brooms, what is imported to all over the worls. See in Eu or US almost all souviners are made in china . If all the people in US, Europe and India swear not to buy those chinese goods, of course pay some extra for non xhinese products, all those small companies will be closed rendering millions without job. That can create unrest in china or opening up more area in china to capitalism and consumerism causing trouble to Communist party of China.
    Of course this needs a peoples movement and not by Govt.orders.
    A silent war involving people believe in democracy, ofcourse a bit sacrifice on cost of goods, that is worth at macro level.

    Reply
    • JM CH says:
      3 years ago

      You said “if all the people in US, Europe and India swear not to buy those Chinese goods….”.
      I say not even 25% of the populace would want to swear by your silly, or rather, a stupid suggestion. One very good example – during the brawl at your country’s border with China where the Indian troops were clearly humiliated, there were (and still are) many cries in India to stop buying & totally ban Chinese goods. Did you Indians manage to do so? Just check the billion $ worth of trades between China & India from that time (of brawl) to today. 😂

  10. JM CH says:
    3 years ago

    The above news report was dated in 2020. Now is beginning of 2022. After so many months have all the Japanese (and/or other foreign) companies left China? I had raised this question & argued with many China haters previously on You Tube comment section when they gloated about the eventual total mass departure of multinational manufacturers from China. I wonder whether they still want to talk about it? But obviously you dudes from TFIGlobal have no shame with your endless blatant lies about China.

    Reply
  11. bambul miah says:
    3 years ago

    this is called biological silent warfare & chinese clearly demonstrated they are good at it, they have beaten the blood thirsty american to meagre second. it is now crystal clear it is chinese turn to rule the world & nothing can stop them. usa europe times is up

    Reply

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