Japan will now use more than $2.2 billion of its coronavirus economic stimulus package as an incentive to motivate increased Japanese manufacturing. This country plans to attempt to persuade its manufacturers to move production out of China and bring it back to Japan. This comes on the heels of the deteriorating relationship between the neighboring countries as the coronavirus pandemic rages on.
An expansive $2 billion is provided for manufacturers in a record stimulus plan offered by Japan. It has joined many other countries around the world that have embraced stimulus packages to try and ward off a financial catastrophe.
Japan is incentivising companies to shift production away from China and back to Japan.https://t.co/F0hMbysGQ8
Should the UK government also consider reducing our dependence on Chinese manufactured goods?
— Business Leader (@BLeaderNews) April 14, 2020
Japan’s announcement came in the same month that Chinese President XI Jinping was set to visit for the first time in over a decade. Japan and several other countries have been swift to criticize China for lying about the severity of the virus and trying to conceal the outbreak without making it publicly known.
Unclear Future Trade between Japan and China
China is Japan’s most significant trading participant, so this is a very bold move on Japan’s part. Back in February, Chinese factories began to shut down in an effort to reduce the spread of the virus. Due to this, exports to Japan dropped nearly 50%. The big hit in the supply chain caused Japanese manufacturing to be negatively affected. The combination of this caused the Japanese government to reduce its future reliance on China.
“We are doing our best to resume economic development,” Foreign Ministry spokesman Zhao Lijian said regarding Japan’s decision during a press conference in Beijing.“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.”
Japan’s Still Friendly With China
Even though Japan has placed due blame on China for its negligent action in this virus catastrophe, Japan has given aide to China. Japan has donated masked and other protective equipment to the country that is at fault for the rapid spread of COVID-19.
Chinese nationals in Japan donate face masks to Japanese citizens as a gesture of gratitude. Japan has donated masks, goggles, and protective suits to China in the past month, winning praises from all corners. #coronavirus pic.twitter.com/Z6tyvAq45X
— Global Times (@globaltimesnews) February 25, 2020
“Since the outbreak of the epidemic, the Japanese government and people have expressed sympathy, understanding, and support to us,” Chinese Foreign Ministry Spokesperson Hua Chunying said in early 2020.
Trump Was Right About China All Along
The U.S. and China have been battling since 2018 when President Trump enforced tariffs on Chinese imports. President Trump has been insisting for years that the United States has been to economically reliant on China. It took a global pandemic to show that he was right all along.
When the president first started imposing tariffs, liberals declared that this “trade war” would severely hinder the U.S. economy. The reason they gave was that we’ve been so heavily reliant on cheap Chinese imports for decades. However, it was China who took the economic blow, all while our economy continued to break records.
The coronavirus showed other countries, such as Japan, the importance of limiting reliance on China. Also, Trump was vindicated when the world, including liberals, decided to finally back border control. When the president put travel restrictions early in 2020 when news of China’s coverup of the virus started coming to light, the media and the Left called him racist and said he was overreacting. Well, that didn’t age well.