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

  • 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 virus and no new date has been set.
 
 

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.

 
 
That has renewed talk of Japanese firms reducing their reliance on China as a manufacturing base. The government’s panel on future investment last month discussed the need for manufacturing of high-added value products to be shifted back to Japan, and for production of other goods to be diversified across  .
 

“There will be something of a shift,” said Shinichi Seki, an economist at the Japan Research Institute, adding that some Japanese companies manufacturing goods in China for export were already considering moving out. “Having this in the budget will definitely provide an impetus.” Companies, such as car makers, that are manufacturing for the Chinese domestic market, will likely stay put, he said.

 

Japan exports a far larger share of parts and partially finished goods to China than other major industrial nations, according to data compiled for the panel. A February survey by Tokyo Shoko Research found 37 per cent of the more than 2,600 companies that responded were diversifying procurement to places other than China amid the coronavirus crisis.
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.”

 

The initial stages of the Covid-19 outbreak in China appeared to warm the often chilly ties between the two countries. Japan provided aid in the form of masks and protective gear – and in one case a shipment was accompanied by a fragment of ancient Chinese poetry. In return, it received praise from Beijing.

 
In another step welcomed in Japan, China declared Avigan, an antiviral produced by Japan’s Fujifilm Holdings
. to be an effective treatment for the coronavirus, even though it has yet to be approved for that use by the Japanese.
 

Yet many in Japan are inclined to blame China for mishandling the early stages of the outbreak and Abe for not blocking visitors from China sooner.Meanwhile, other issues that have deeply divided the neighbours – including a territorial dispute over East China Sea islands that brought them close to a military clash in 2012-13 – are no nearer resolution.

 

Chinese government ships have continued their patrols around the Japanese-administered islands throughout the crisis, with Japan saying four Chinese ships on Wednesday entered what it sees as its territorial waters.

 

 

https://www.scmp.com/news/asia/east-asia/article/3079126/japan-pay-firms-leave-china-relocate-production-elsewhere-part

 

Good. Hopefully more countries follow suit.

Edited by Kushman
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6 hours ago, SILLY GOOSE said:

 

#GoVegan

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VegNews.AnthonyFauciVanityFair

DOCTOR ANTHONY FAUCI CALLS FOR GLOBAL SHUTDOWN OF WET ANIMAL MARKETS

“It boggles my mind how when we have so many diseases that emanate out of that unusual human-animal interface, that we don’t just shut it down,” Fauci said. 

by ANNA STAROSTINETSKAYA

APRIL 3, 2020


51,274 Shares    

Today, Anthony Fauci, MD—the leading COVID-19 pandemic expert in the United States—called for a global shutdown of wet animal markets. “I think we should shut down those things right away,” Fauci said on Fox & Friends. “It boggles my mind how when we have so many diseases that emanate out of that unusual human-animal interface, that we don’t just shut it down. I don’t know what else has to happen to get us to appreciate that…because what we’re going through right now, is a direct result of that.” COVID-19 is thought to have originated in a wet animal market—where wild animals, such as bats and pangolins, and traditional “livestock” are sold and slaughtered side-by-side—late last year in Wuhan, China. Fauci urged that the international community unite to force the closures of such markets worldwide. 

Fauci’s views are echoed by many others, including Republican senator Lindsey Graham and conservative journalist Tucker Carlson. However, limiting the shut down to wet animal markets alone may not be enough to stop the spread of future zoonotic diseases as many, such as swine flu (pigs) and H5N1 (poultry), have originated from slaughterhouses where “traditional” animals are killed for food. 

In March, national investment firm Karner Blue Capital (KBC) urged governments worldwide to take action across industries where animals are exploited, including in animal agriculture. “Shutting down or regulating China’s wet markets will wipe out a dangerous set of human-animal interactions, but it’s just one step toward sound public health policies and interactions,” KBC President Vicki Benjamin said. “We need to completely rethink our relationship with animals and begin taking steps to transition toward regenerative agriculture, biodiversity protection, and a plant-based economy.” 

Photo Credit: Vanity Fair

 

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