Japan To Give Incentives To Companies That Move Manufacturing Out Of China
Japanese firms have made massive investments to attract companies based in China
China has disturbed its trade relations with several nations across the world, due to the Coronavirus pandemic and its continuous territorial aggression with its neighbouring countries. China is engaged in a global trade war, with the US tracking its exports. Asia’s largest economy is now facing another big threat which is of companies leaving the country. Japan, who is one of the biggest trading partners of China, will now start paying companies to move factories out of the world’s most populous country. Even India is trying to lure firms that are leaving China.
According to sources, Japanese firms have made massive investments so far to attract companies based in China. This step has been taken to de-risk Japan’s over-dependence on the latter. Fifty-seven companies, including some privately-held firms, shall reap the benefits of this initiative. Iris Ohyama and Sharp will be at a great advantage as they will receive $536 million in the form of subsidies.
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