COMMENTS / COLUMNISTS
Japan must act decisively to halt virus spread, or Asian supply chain will shatter
Japan must act decisively to halt virus spread
Published: Feb 19, 2020 09:33 PM

Illustration: Luo Xuan/GT



Fear and overreaction over the spread of a deadly coronavirus may inflame a new wave of protectionism as some countries mull import bans on Chinese products. As the virus threatens to spread through Japan, Tokyo should spare no effort, regardless of the cost, to stop the spread before any protectionist measures are introduced, otherwise the whole industrial chain in Asia may suffer a deadly blow.

The Asian supply chain is a lot more complex than some Western observers thought. Statistics from McKinsey showed more than 50 percent of Asian trade is intra-regional, much higher than in North America. Japan is a major part of the supply chain, making key parts and components. If there is an import ban on made-in-Japan products or a shutdown of production lines in Japan's component factories, it will cause a ripple effect across Asia.

Some carmakers in South Korea said they had to shut down their domestic factories because of a shortage of parts imported from China due to the coronavirus. If Japan becomes the next China in terms of the coronavirus outbreak, the negative impact on the Asian supply chain will be much greater than China's.

Japan is in the early stage of a novel coronavirus outbreak. A public gathering to celebrate Emperor Naruhito's 60th birthday has been cancelled to curb the spread of the coronavirus. Japan deserves applause for all its efforts. 

The next two weeks will be decisive to see whether Japan would become the next Wuhan. It is now believed the coronavirus is significantly more contagious than previously thought. China and other economies should make thorough preparations for the worst-case scenario in Japan.

On the front lines of China's war against the coronavirus, Wuhan has accumulated experience in anti-infection and disease treatment. Currently, no one knows the virus better than Chinese healthcare workers. We believe China won't be stingy in offering help. 

Although it would be a severe blow to bilateral trade and investment as China and Japan try to control the spread of the virus, the epidemic will prompt the two countries to cooperate to fight against the virus. Containing the spread of the epidemic is certainly the priority, and that's enough to let the two countries put aside some historical disputes and work together.

The author is a reporter with the Global Times. bizopinion@globaltimes.com.cn


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