China as we all aware that it is the world’s biggest economical hub currently. However, Japan on the other hand has decided and taken a firm stance on making Japanese companies and organizations exit from China as soon as possible. This move will be very positive for them as they can boost their economy, at the same time it will impose a negative impact on the Chinese economy.
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.
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.
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.
Japan helps 87 companies to break from China after the pandemic exposed overreliance
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.