More Radical Action from the new Japanese PM
Japan’s government is to take the unprecedented step of buying factories and machinery directly with taxpayer funds, the latest in a series of radical steps to lift the country out of its deep slump.
Premier Shenzo Abe is to spend up to one trillion yen (£7.1bn) buying plant in the electronics, equipment, and carbon fibre industries to force the pace of investment, according to Nikkei news.
The disclosure came just a day after Mr Abe vowed to revive Japan’s nuclear industry with a fresh generation of reactors, insisting that they would be “completely different” from the Fukishima Daiichi technology.
The industrial shake–up shows the ferment of fresh thinking in the third–largest economy after years of paralysis. Output shrank 0.9pc in the third quarter and industrial production has fallen 3.3pc over the past two months, made worse by a boycott of Japanese goods in China over the Diaoyu/Senkaku islands row. Exports to China fell 38pc in November.