Japan Raise $2.2 Billion for its Manufacturing Firms to Leave China

Japan is willing to fund its companies to shift manufacturing operations out of China.

Japan Raise $2.2 Billion for its Manufacturing Firms to Leave China
Japan Manufacturing Firms Leave China
The country has earmarked $2.2 billion to help its manufacturers shift production out of China.

Out of this amount, $2 billion is for those willing to relocate production back to Japan.

The rest is for those manufacturers who are planning to shift their production base elsewhere.

China which is japan's biggest trading partner saw a slump in export due to the lockdown.

This forced Japan to rethink supply chains between the major trading partners.

The move can have a ripple effect on the global economy as countries can ask the manufacturer to come back or relocate.

Japan also emphasized diversifying production across Southeast Asia which could make it a major economic power.

However, this decision may not be good for the china-japan relationship. 

Chinese premier Xi Jinping was supposed to visit Japan this month but that has been postponed.

In fact, Apple is planning to move its manufacturing out of China to India after the Coronavirus lockdown. 

The USA is likely to be the other big giant that might ask its tech companies to relocate or shift their base.

Recently, Netherlands, Australia, Finland has called out China for supplying unsuitable masks.

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