◎Japan's “Decoupling from China”: Five Prescriptions Inspired by Europe
This is a continuation of the previous chapter.
If Japan continues to show excessive consideration for China and fails to take a clear stance, it risks being labeled a "barbaric nation" by the West—just like China.
◎Five Prescriptions for Japan’s “Decoupling from China”
So how should Japan proceed with decoupling from China, using Europe as a reference?
(1) First, Japan should aim to suppress the virus as soon as possible through democratic means, namely by encouraging voluntary behavioral change among its citizens, and strive to declare an end to the pandemic.
China, under one-party dictatorship, claims to have contained the virus by restricting privacy.
If the West continues to struggle, there is concern that a value system of “sacrificing freedom for safety” will gain global acceptance.
To prevent this, liberal democracies such as Japan must demonstrate that it is possible to contain the virus without restricting freedoms.
Taiwan and Germany, both of which have successfully managed the pandemic, serve as useful models for Japan, a nation that upholds freedom, democracy, and the rule of law.
(2) Next, Japan should participate in the international investigation into the origin of the virus.
In the U.S. and Europe, there is a growing consensus that China bears responsibility for the pandemic due to its ongoing cover-up, and calls are intensifying for full disclosure and on-site inspections.
If Japan, as with the postponement of Xi Jinping's state visit, continues to placate China without making its position clear, it may be branded a barbaric state by the West just as China has been.
The rift between the West and China continues to deepen.
As a member of the G7, Japan should align with Western nations, join the international investigation, and defend liberal democratic values.
(3) Third, Japan, along with the U.S. and Europe, must restructure supply chains that are overly reliant on China.
The Japanese government has included a total of 243.5 billion yen in its emergency economic measures to support companies relocating their China-based operations either back to Japan or to third countries.
In Asia, friendly nations such as Vietnam and Indonesia can serve as alternative destinations for investment.
For high-value strategic industries, Japan should bring production back home and pursue diversification in coordination with the Five Eyes alliance.
Following the example of the Trump administration, Japan should also implement tax cuts and regulatory reforms as incentives.
Japan has previously expanded rare earth procurement to countries like France and Vietnam, moving away from its dependence on China.
This experience should be leveraged again, in partnership with the U.S. and EU, to counter China’s unfair resource diplomacy.
(4) From a national security perspective, Japan must also protect its domestic companies from Chinese investments and acquisitions.
Along with the enforcement of the revised Foreign Exchange and Foreign Trade Act, the government announced on May 8 that it would designate 518 companies in 12 critical sectors—such as nuclear energy, weapons manufacturing, and pharmaceuticals—as “core companies.”
For these firms, the threshold requiring prior notification for foreign investment was lowered from 10% to 1%, thus tightening regulations.
However, unlike the United States’ Committee on Foreign Investment (CFIUS), which includes intelligence agencies and has the authority to retroactively punish transactions posing national security concerns across all sectors, Japan's regulations remain largely procedural and prior-notification based—leaving potential blind spots.
Japan should strengthen information-sharing with the West to prevent the outflow of sensitive technology to China.
(5) Lastly, Japan must aim to break free from its dependence on inbound tourism from China.
The COVID-19 crisis dealt a heavy blow to department stores and tourism-related industries, but the root issue lies in the unsustainable structure of relying on Chinese tourists' “explosive buying.”
Globally, Japanese cultural exports—anime, manga, and video games—are generating a “Neo-Japanism” boom.
In London, British citizens flocked to the British Museum’s “Hokusai” and “Manga” exhibitions.
The “Mitsumasa Anno” exhibition held at Japan House also saw great success.
Japanese-style katsu curry has become hugely popular.
Japanese culture is evolving into a form of soft power.
British acquaintances who visited Japan for last year’s Rugby World Cup were captivated by the beauty and politeness of Japanese hospitality and expressed a strong desire to return.
Perhaps it is time for Japan to consider targeting inbound tourism from Commonwealth nations like the UK and New Zealand, which participated in the Rugby World Cup.
