And so it begins the undoing of China's economic might brought to you by Japan. As 87 Japanese companies are all set to pack up and leave. As per a report by Japanese newspaper Nikki Asian Review, companies have lined up to seek funds from Japan's Ministry of Trade, Economy and Industry in order to move their factories out of China. So far, a total of 87 companies have signed up with the Ministry to move their manufacturing units out of China, with 57 moving back to Japan and 30 to different Southeast Asian nations like Vietnam, Thailand and Laos. As per the report, Hoya, which produces hard drive parts, will move to Vietnam and Laos. Sumitomo rubber industries will make nitrile rubber gloves in Malaysia. Meanwhile, Shin et Su chemical will shift production of rare earth magnets to Vietnam. The Shinzo Abe led Japanese government would pay $70 billion or $653 million to these companies as an incentive for moving factories out of China. Previously, the Abe government had approved a stimulus package worth a whopping amount of $908.2 trillion or $993 billion, which is equal to 20% of Japan's economic output. This was to cushion the impact of the pandemic on the world's third largest economy. Out of the total amount, Japan has earmarked $2.2 billion to help its manufacturers shift production out of China. In $20 billion or $2 billion, it is pledged for Japanese companies shifting production back to Japan and the remaining $23.5 billion has been kept for those seeking to move production to other countries. The disruption in supply chains amidst the growing scale of the Wuhan virus and the damages incurred when the coronavirus epidemic was at its peak in China has led Japan to take this radical step. Companies between China and Japan have always been bitter, but both countries have put their differences behind to improve business and trade ties. Over the years, China became the largest trading partner of Japan. In 2018, Japan's imports from China were worth $173 billion, which is 23% of the total imports, and the exports were worth $144 billion, which is 19.51% of the total exports. Overall, China accounts for more than 20% of Japan's total trade, and Japanese businesses have invested billions of dollars in China employing a large number of Chinese people. However, relations between the two countries started moving southwards once again after the anti-Japan riots in Chinese cities in 2012. The Japanese government has been trying to decouple China from its supply chain for the last eight years with little success. But the coronavirus pandemic gave it a golden opportunity. In the last four months, the Japanese government has made every effort to sever ties with the communist government of China and convince businesses to move the manufacturing units to Japan or to any other friendly country. In April this year, Chinese President Xi Jinping was supposed to go to Japan on an official visit to hold talks on a range of issues including border disputes, trade, investment, and security of the region. However, before Xi Jinping could set foot in Tokyo, the coronavirus struck China and the visit was postponed. Now, as things go back to normal in China and Japan, Xi Jinping is looking for a new schedule to take off for the official visit to his eastern neighbour. However, Shinzo Abe does not seem so keen to welcome the Chinese leader. The reason behind anti-Japan riots in China were the Senkaku Islands, and the reason behind this today's animosity have also become the Senkaku Islands. The Senkaku Islands are a disputed island chain, which the Japanese government purchased from a private Japanese citizen in 2012. Recently, they were fully integrated with Japan to Earth China, which calls them the Diau U Islands, and to ensure that Xi Jinping cancels his visit. Lawmakers from Japan's ruling party also passed a resolution against the imposition of the National Security Law in Hong Kong, and urged the Prime Minister to reconsider the visit of the Chinese president. The Japanese government has openly spoken on the complicity of the Chinese government in the spread of the coronavirus disease. Now, Japan's channel relations are at a stage where state visits by the top leaders are not possible. This also serves the agenda of the Japanese government to not be perceived as making any compromises and to force businesses to move their factories out of China.