Japan removes travel restrictions and expands the daily border mobility of international travelers from 106 countries today.
The move seeks to bolster the recovery after the economic slowdown experienced by Japan’s service sector and educational institutions, which rely heavily upon foreign funding. Japan’s strict COVID restrictions on borders curtailed operations and investments by foreign firms leading 40,000 companies to go bankrupt. Today’s re-opening of borders indicates Japan’s willingness to encourage foreign firms to commence business again. Additionally, Japan is increasing the daily permit of entry to 10,000 international students to stimulate the education sector.
Japan will now likely begin a slow economic recovery with hopes that foreign investments will return to pre-pandemic levels. Foreign firms, however, may be hesitant about the risks involved with the change in border restrictions. However, Japan might modify its trade policies to improve the ease of doing business for these firms. Expect Tosho to restructure its operations to entice foreign investments. Japan is the last country in the G7 to open its borders. The expected economic growth for fiscal year 2022, 2.2%, is Japan’s lowest since 2019 and resuming business again will help Japan reinvigorate its economy.
Wake up smarter with an assessment of the stories that will make headlines in the next 24 hours. Download The Daily Brief.
Simran Sharma is an Analyst and a second-year graduate student at the Fletcher School of Law and Diplomacy concentrating on security studies and international negotiations. Prior to her degree at Fletcher, she worked in the international development space in India as a Gandhi Fellow with the Piramal Foundation. Her regional interests include the rise of China and the great power competition in South Asia with a focus on maritime issues in the Indian Ocean Region and South China Sea.