Japan realized it has a severe over-reliance on China, and instead of talking about fixing it, it’s actually doing what’s necessary to distance itself from its largest trade partner.
According to The Nations, Japan has moved dozens of its own companies (numbered at 87) out of China and either back onto its own shores or into other Asian territories:
In March, Prime Minister Shinzo Abe said the government wanted to bring production back home and diversify into Southeast Asia. The following month, the government set aside $2.2 billion in its coronavirus economic recovery package to subsidize that process.
It has now announced a list of companies that will benefit from the first round of subsidies, with 57 companies receiving a total of $535 million to open factories in Japan and 30 others paid to expand production in Myanmar, Vietnam, Thailand, and other Southeast Asian countries.
China is Japan’s largest trading partner, but Japan’s Ministry of Economy, Trade, and Industry (METI) has been trying for several years to reduce the country’s dependence on its giant neighbor.