Japan unveiled tax measures on Thursday aimed at encouraging companies to spend ...
TOKYO - Japan unveiled tax measures on Thursday aimed at encouraging companies to spend their cash piles on start-ups and other investments and stimulating a slowing economy, while also helping firms to compete with China’s advance in 5G technology.
Japan’s economy grew at an annualized rate of 1.8% in July-September, backed by capital spending and domestic demand, but analysts expect growth to slow in the current quarter as the Sino-U.S. trade war and the national sales tax hike likely weighed on the world’s third-largest economy. The roll-out of 5G networks, with speeds fast enough to download a movie to a smartphone in seconds, has raised security concerns in the United States over equipment for the upgrade supplied by Chinese telecommunication firm Huawei [HWT.UL].
“With this tax revision, I believe we managed to raise a flag so that Japan can lead America and EU on 5G development,” Amari said. He made no mention of China.
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