Japan has allocated an economic stimulus package of $2.2 billion to help its manufacturing firms shift production out of China, where supply chains have been disrupted due to coronavirus outbreak, a Bloomberg report said. Out of $2.2 billion, the Japanese government proposes to allot 220 billion yen ($2 billion) to firms for shifting production back to Japan and 23.5 billion yen to companies seeking to move manufacturing base to other countries, the report quoted sources as saying.
Prime Minister Shinzo Abe-led Japanese government has taken this decision at a time when Chinese President Xi Jinping is expected to visit to Japan early this month. It remains to be seen how this change in policy stance will affect Japan's relationship with China, which is one of its biggest trading partner.
On April 7, PM Shinzo Abe declared a state of emergency for Tokyo and six other prefectures with big urban populations that have been grappling with a rising cases of coronavirus. He also announced a record 108.2 trillion yen ($992 billion) stimulus package to mitigate the impact of COVID-19 on the economy and to protect the lives and lifestyles of the public and move toward economic recovery. The relief fund, which amounts to 20 per cent of the Japan's annual economic output, indicates the magnitude of damage that policy makers are bracing for.