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Japanese Prime Minister wants to withdraw companies from China

While the epidemic is raging around the world, Japanese Prime Minister Shinzo Abe has proposed measures to build an economy less dependent on China.

Mr. Abe's call has led to a heated debate among political circles in China. A source in the economic field in China said that Beijing has serious concerns about foreign companies leaving China.

If the Wuhan pneumonia pandemic does not occur, Xi Jinping will make his first visit to Japan and conclude with Xi proudly proclaiming a "new era" in Sino-Japanese relations. However, Sino-Japanese relations are now at the crossroads when Xi's trip is postponed. 

The earliest signals of Mr. Abe's new policy can be seen from March 5. Specifically, at the Council for Investment for the Future, Mr. Abe said that he wants production facilities of high value-added products to return to Japan. Incidentally, March 5 is also the day announced to postpone Xi's visit to Japan.

Mr Abe said during the meeting:

"Due to corona virus, fewer products made in China come to Japan. People are worried about our supply chain."

"We should try to move value-added items back to Japan, and for other goods, we should diversify production in many countries like ASEAN countries."
On April 7, the Japanese government approved an emergency economic stimulus package to call for the re-establishment of a supply chain that has been hit by an epidemic. 

The government spends about $ 2.2 billion in the additional budget plan for fiscal year 2020 to support Japanese companies to relocate their factories to or to Southeast Asian countries to diversify production.

In addition, in the United States, there have been meetings to discuss US supply chain dependence on China. If both the United States and Japan, the world's largest and third largest economies, leave China, this will have a huge impact on the country's economy.

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