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Japanese Companies To Exit China, Will This Benefit India?
By: Tupaki Desk | 10 April 2020 7:39 AM GMT
In what is being seen as a first shock to China post-Covid, the Japan Government is all set to bring back all its companies, now stationed in China, to move out. The Japanese Government is encouraging every Japanese company, now working out of China, to move out from there. They are being encouraged to set up their factories in any other country or in Japan.
A Whopping 2 billion US dollars have been pledged for such Japanese companies in China to move back to Japan. Another 23.5 billion yen has been earmarked for moving Japanese companies in China out into other countries. This would mean that there would be an exodus of Japanese companies from China. Japan has suffered because of the Lockdown in china as the supply chain of spare parts for its products was disrupted. Due to this, Japan suffered very heavily and has defaulted on its commitments to various buyers across the globe.
Japan has also upped ante over the spike in Corona cases due to late alerts sent by the World Health Organistion. Chinese deputy minister Taro Aso is on record slamming the WHO as Chinese Health Organisation.
This decision of the Japanese government could prove to be a boon for countries like India and Vietnam. Already, India has 1441 companies operating in India and the businesses are spread in countries like Karnataka, Tamil Nadu, West Bengal and Gujarat. So, will India gain from China's loss? Let's wait and see.
A Whopping 2 billion US dollars have been pledged for such Japanese companies in China to move back to Japan. Another 23.5 billion yen has been earmarked for moving Japanese companies in China out into other countries. This would mean that there would be an exodus of Japanese companies from China. Japan has suffered because of the Lockdown in china as the supply chain of spare parts for its products was disrupted. Due to this, Japan suffered very heavily and has defaulted on its commitments to various buyers across the globe.
Japan has also upped ante over the spike in Corona cases due to late alerts sent by the World Health Organistion. Chinese deputy minister Taro Aso is on record slamming the WHO as Chinese Health Organisation.
This decision of the Japanese government could prove to be a boon for countries like India and Vietnam. Already, India has 1441 companies operating in India and the businesses are spread in countries like Karnataka, Tamil Nadu, West Bengal and Gujarat. So, will India gain from China's loss? Let's wait and see.
