fredag 24. april 2020

Coronavirus: China faces fight to hang onto foreign manufacturers as US, Japan, EU make Covid-19 exit plans

Over the space of two weeks, powerful figures from three of the world’s four largest economies have publicly announced or discussed plans to lure their countries out of China, with such rhetoric finding growing support after the supply shock caused by China’s coronavirus shutdown.

On Tuesday, European Union trade commissioner Phil Hogan said the bloc would seek to “reduce our trade dependencies” after the pandemic, Politico reported. Last week, Japan unveiled a US$2.2 billion fund to tempt Japanese manufacturers back to the country or even to Southeast Asia – as long as they leave China – in response to supply chain disruptionsstemming from the pandemic. This followed the director of the United States’ National Economic Council, Larry Kudlow, saying that Washington should pay the moving costs of American firms bringing manufacturing back from China.