In the aftermath of the coronavirus pandemic, Japan will spend more than $2.2 billion of its coronavirus economic stimulus package to incentivize its manufacturers to move their operations out of China as relations between the two countries sour.
The historic stimulus package provides producers with $2 billion to shift production to Japan, and more than $216 million to help businesses pull production out to other countries.
Imports from China, Japan's largest trading partner, dropped by almost half in February as companies were forced to shut down in the country while the pandemic tore across the mainland.
The action coincides with what could have been a commemoration of friendlier relations between the two sides. Chinese leader Xi Jinping embarked on an official visit to Japan earlier this month.
But what might have been the first visit of its sort in 10 years was cancelled in the midst of the global health crisis and no new date has been scheduled.
There will be something of a change, Shinichi Seki, an economist at Japan Research Institute, disclosed. Seki also noted that some Japanese companies in China were already planning to leave. "This would certainly have an opportunity to include that in the budget," Seki said.
The study added that a February survey conducted by Tokyo Shoko Research found that as a result of the coronavirus pandemic, 37 percent of the over 2,600 companies reacting to Japan's stimulus proposal were already searching for locations other than China.
According to Chinese Foreign Ministry spokesperson Zhao Lijian, they are doing their best efforts to restart economic activities, when asked about the relationship between China and Japan during a media briefing in Beijing on Wednesday.
Lijian said that through this process, they hope other countries will behave like China and take reasonable steps to make sure the global economy and supply chains will be "impacted as little as possible."
Among other countries, politicians in Japan and the US have criticized China for failing to react strongly during the early days of the coronavirus outbreak and hiding the severity of the threat from other nations. Japan has donated masks and personal security equipment to China amid the recent developments.
The Japanese government and citizens have expressed solidarity, empathy and support to the Chinese since the start of the outbreak, Chinese Foreign Ministry spokeswoman Hua Chunying said early February. As of Thursday, Japan had more than 4,700 confirmed coronavirus cases, and at least 85 deaths.
