The Government of Japan can transfer production from China. Coronavirus was heavily affected by China, causing production to cease in China. Exports to other countries were also closed due to the shutdown of production. Out of all the production in Japan, a lot of the material comes from China. Due to the lockdown in China, exports of essential goods used in production in Japan are not expected. For this reason, the Japanese company is closing its production facility in Japan.
Japan Imports By Country
- China 24%
- The United States 12%
- Australia 6.%
- South Korea %.%
- Others 49.%
Japan’s Nissan car company has already suspended production due to lack of supplies. This situation is in almost every surfactant sector. For this reason, the Government of Japan has made a decision that an emergency package of approximately $ 1 trillion (USD) will be provided. The package is 20% of Japan’s economy and Japan currently has a GDP of $ 5 trillion (in nominal terms).
Japan is the largest provider of relief packages in the world in terms of GDP. Given this situation, Japan has formed a panel. In which they have said in future that they will decide to invest. The panel gave a report to the Government of Japan that whatever products are being imported from China, they should be discontinued and made themselves. And some goods should be imported from countries in Southeast Asia. It is stated in this report.
The Government of Japan has decided to provide $ 2.2 billion in financial support to move its production from China. Whichever company will shift from China to Japan will help its production plants in Japan to pay that expense.
This decision will also increase employment in Japan and Japan’productsector will never be closed due to other countries. Japan’s TED deficit will also be a reason and it will also be good for the economy.