Japan will pay its firms to leave China and is in favour of boycotting China from Global Market.
China being most populous country with nearly 1.4 billion residents, it is the world's leading manufacturer of chemical fertilizers, cement, electronic products and steel. Industry and construction account for about 48% of China's GDP. China ranks first worldwide in industrial output. But since coronavirus outbreak Chinese manufacturing hits record low; it shows the virus is having a bigger impact than the financial crisis that shook the world last decade. After Donald Trump calls coronavirus Chinese Virus in tweet the eminence of China in Global market has been scarred as this statement acted as an allegation to China for purposely spreading Coronavirus.
Since the virus first originated in a wet market in Wuhan, people around the world have been criticising the Chinese government and the citizens for the consumption of wild animals. Call to boycott Chinese goods is gaining steam amongst Japanese citizens and the Government, following the outbreak of the novel coronavirus. Japan is willing to fund its companies to shift manufacturing operations out of China. China is Japan’s biggest trading partner under normal circumstances, but imports from China have slumped by almost half in February due to lockdown to curb the spread of the virus hitting manufacturing and the supply chain. As the disruptions caused to production by the coronavirus pandemic has forced a rethink of supply chains between the major trading partners.
As part of its economic stimulus package, Japan has set aside $2.2 billion to help its manufacturers shift production out of China. Of this amount, $2 billion is for companies shifting production back to Japan and rest for those seeking to move production to other countries. The Japanese government’s panel stated that manufacturing of high-added value products to be shifted back to Japan, and for production of other goods to be diversified across Southeast Asia. This has put Japanese Government into burdensome situations and going to cost a hefty amount of money. This is the reason for Japan favouring to Boycott China.